75% of EU crypto companies risk losing licence on 1 July

On 1 July 2026, the temporary transitional arrangement expires which gave crypto companies in Europe the opportunity to continue operating while applying for an official MiCA licence. The impact is significant: an estimated 75% of existing crypto exchanges, brokers and wallet providers still do not meet the requirements and risk losing access to European users.

Law firm Hogan Lovells counts only 194 licenced crypto companies within the EU in May 2026, including banks. That stands in stark contrast to the more than 3,000 registered companies that the market counted in 2024. The European crypto regulation MiCA requires every exchange, broker or wallet service that wants to serve EU customers to hold such an official licence.

What does this mean for users?

Platforms without a licence may no longer accept new deposits after 1 July. They are obliged to assist users in withdrawing their funds or transferring to a licenced platform. That sounds orderly, but in practice it can cause unexpectedly much trouble for many users, especially if they are not informed in time.

Legislators state that MiCA is designed to protect consumers. In the short term, however, that protection means that a large proportion of crypto users suddenly no longer have access to the platform they are used to. Regulators in certain countries are also considering additional measures such as blocking websites and publishing public warning lists for non-certified providers.

Enforcement varies by country

Although MiCA is a European law, enforcement lies with national supervisors. That creates inequality: in one country an unlicenced platform can continue operating for relatively long, while in another country action is taken quickly. In the coming weeks, it will become clear how strictly the different countries act against platforms that miss the deadline.

The crypto exchange sector thus faces a major shake-up. Those with a licence benefit from a market with much less competition. Those who lack a licence must cease their activities in Europe or drastically adjust them. For users, it is wise to check now whether their platform has a valid MiCA licence and, if not, to get their crypto wallet in order in time.