On 17 April 2026, the European Securities and Markets Authority (ESMA) released a statement to clarify its supervisory expectations regarding the expiration of the transitional period(s) under the Markets in Crypto-Assets Regulation (MiCA).

The MiCA transitional period will officially conclude on 1 July 2026. After this date, any entity offering crypto-asset services to EU clients without a valid MiCA licence will be in violation of EU law and must discontinue such services.

Important! Two categories of entities were not permitted to provide crypto-asset services even before 1 July 2026: first, entities that did not provide crypto-asset services in accordance with applicable national law before 30 December 2024 and therefore could not rely on the transitional regime; and second, entities active in Member States where the transitional period had already ended before 1 July 2026. Besides, this applies irrespective whether the MiCA has been implemented in a Member State or not, ESMA emphasized.

In the statement, ESMA outlines its expectations for crypto-asset service providers (CASPs) regarding wind-down procedures and client migration. Additionally, the statement provides guidance for Member State competent authorities and includes warnings for consumers.

As a leading legal advisory firm for the fintech and crypto industries, SBSB is focused on the impact of the MiCA regulation itself and ESMA statement on businesses operating in the European crypto market.

Practical Advice for European Crypto Businesses

Client Offboarding or Transfer to Other Legal Entities
Businesses that do not obtain MiCA authorisation by the end of the transitional period on 1 July 2026 must act to ensure an orderly exit. One solution is to either offboard clients or transfer them to another entity that holds the necessary MiCA licence. The offboarding process should be carefully managed to prevent any undue harm to clients. Businesses must ensure that crypto-assets held on behalf of clients are transferred to authorized Crypto-Asset Service Providers (CASPs) or to self-hosted wallets. Clients must be given prior notice before implementing such plans.
Finding Relevant Partners with MiCA CASP Licence
To facilitate the transfer of clients, businesses should consider partnering with licenced CASPs within the EU. These partners can assume the management of existing clients who require services compliant with MiCA. SBSB can assist in identifying trusted partners with the necessary CASP licences, ensuring that your clients experience a seamless transition.
Plan “B” – Licencing Outside the EU
For businesses interested in maintaining access to EU clients under the reverse solicitation rule, seeking a licence outside the EU may be an alternative strategy. While this approach requires careful planning and execution, it may provide the flexibility to continue servicing EU clients without directly operating under MiCA. SBSB can advise on jurisdictions where such licensing may be viable and ensure compliance with reverse solicitation rules.
Securing MiCA CASP Authorization
For businesses still targeting the EU market, it is crucial to apply for MiCA CASP authorization as soon as possible. While applying for the licence is essential for companies wishing to operate in the EU after the 1 July 2026 deadline, it’s important to note that without a MiCA licence by this date, businesses will be prohibited from providing crypto-asset services to EU clients. SBSB can assist businesses with the MiCA licensing process to ensure a timely and efficient application, but it is critical to act promptly to avoid business disruption.

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