New Rules Could Force 80% of Crypto Firms Out of EU

Investors are being urged to verify whether their crypto provider appears on the official MiCA register before using its services.

The transitional grace period under the Markets in Crypto-Assets (MiCA) regulation officially ends across the EU on July 1, 2026.

It means that any firm still operating without a MiCA license will be breaking the law.

MiCA Rules Force Crypto Firms to Adjust

The European Securities and Markets Authority (ESMA) had ordered all unauthorized digital asset providers to close their businesses before the end of the transition period. The directive formed part of the EU’s MiCA rules that require firms to obtain authorization from a national regulator to continue operating.

Pre-MiCA categorization data suggested that Europe had over 3,000 legitimate virtual asset providers, but now, several exchanges have already announced changes to their European services. For instance, Binance said that it will suspend some of its operations in the market after failing to secure a MiCA license.

In an interview with the Block, former CEO Changpeng Zhao (CZ) revealed that the exchange’s license application in Greece had been “fully compliant” and days away from approval before political forces reportedly forced it to be withdrawn, with journalist Gareth Jenkinson alleging that sources had informed him that Christine Lagarde, the ECB president, had asked Greek authorities not to greenlight the permit.

The company is now seeking the same approval in other EU member states such as France, Ireland, and Latvia.

According to OKX’s European CEO Erald Ghoos, who was quoted in a recent report by CoinDesk, 80% of crypto companies won’t survive MiCA and will be pushed out of the EU completely. Some corroboration was offered in the same report by Dubai lawyer Irina Heaver, who said inquiries from European founders had surged as they weighed relocating to the UAE, where licensing through the Virtual Assets Regulatory Authority can take days instead of months.

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For consumers, ESMA urged caution, saying that investors should verify whether their provider appears in the MiCA register and confirm which legal entity is actually holding their assets.

It also added that they should consider transferring funds if their platform remains unauthorized after July 1 since those using unauthorized providers may face reduced legal protections and a greater risk of losing access to their crypto assets.

Trading Surge Reported Elsewhere

But not every signal is pointing toward exodus. While policy analysts debate the theoretical impacts of the new framework, crypto platforms on the ground are already seeing a shift in capital deployment. Konstantins Vasilenko, co-founder and CBDO of Paybis, notes that the new rules are successfully unlocking access to larger institutional participants who require regulatory certainty before deploying capital.

Vasilenko shared directly with CryptoPotato that since securing their MiCA and PSD2 licenses in Latvia this past May, their EU trading volume has surged by 70% quarter-over-quarter, even as transaction counts held steady.