ESMA statement on the end of the MiCA transition period

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As the MiCA transition period ends, ESMA calls on unauthorised crypto-asset service providers to carry out an orderly wind-down while protecting client interests.

The European Securities and Markets Authority (ESMA) issues this statement to clarify expectations for how unauthorised crypto-asset service providers (CASPs) under the Markets in Crypto-Assets Regulation (MiCA) should wind down after the transition period, which ends on 1 July 2026, while protecting investors .[1]

A number of CASPs will have obtained authorisation by 1 July 2026, but a proportion of entities, including significant service providers currently serving European Union (EU) clients under national regimes, may not obtain authorisation by the deadline.

ESMA expects unauthorised CASPs to take immediate action to carry out an orderly wind-down of their EU operations, while protecting client interests and mitigating market integrity risks .[2]

Specifically, CASPs should:

• immediately cease onboarding new EU clients, refrain from initiating new client relationships or opening new accounts, and halt marketing activities and solicitations;
• limit the provision of services to only those activities necessary to sell or transfer crypto-assets, reallocate assets, or close positions. The custody of client crypto-assets may only continue for the period strictly necessary to complete an orderly wind-down;
• clearly, promptly, and repeatedly communicate with clients (retail and institutional) about the measures taken to protect their assets and the wind-down plans, so that clients are aware of the deadline for divesting, transferring, reallocating, or closing their positions. CASPs' communications with clients should specify the deadline by which remaining positions will be automatically closed and provide information on client protection requirements.

The wind-down should be implemented in accordance with all relevant EU and national ethical legislation and anti-money laundering and counter-terrorist financing (AML/CTF) obligations. Specifically, CASPs should implement effective AML/CTF controls throughout the wind-down process, including customer due diligence measures, transaction monitoring, screening against restrictive measures and sanctions lists, reporting suspicious transactions and activities, adhering to record-keeping requirements, and ensuring compliance with applicable obligations regarding transfers of funds and traceability of crypto-asset transfers. ESMA expects unauthorised CASPs to act in good faith and with due diligence to protect clients.

If clients are taken over by a MiCA-authorised CASP, this acquiring CASP should carry out all necessary onboarding procedures, including customer due diligence measures and any other AML/CTF checks required under the applicable legal framework.

ESMA also reminds CASPs established outside the EU that they cannot provide MiCA-regulated services or solicit EU clients [3] .
This also applies to business-to-business transactions. In this regard, ESMA reminds that MiCA prohibits CASPs from outsourcing or delegating certain services, particularly custody, to entities that have not obtained a CASP operating authorisation.

Consumer Warning

ESMA reminds clients of unauthorised CASPs – whether EU or non-EU entities – that they are not covered by the protection measures provided by MiCA, including the protection of client assets.

Clients using crypto-asset services in the EU are encouraged to check the ESMA register to verify if their service provider is authorised under MiCA and to take urgent action if not, including transferring their crypto-assets to an authorised CASP, if one is identified, or to a self-custodied wallet. Clients facing difficulties should first contact their service provider.

ESMA and national competent authorities will engage directly with relevant entities and coordinate actions to monitor whether significant unauthorised cross-border CASPs are winding down promptly, with a primary focus on client protection, financial stability, and market integrity. ESMA and national competent authorities will also collaborate with the European Banking Authority and AMLA. Within ESMA's cooperation framework, national competent authorities may, where necessary, take coordinated measures against unauthorised CASPs after the transition period ends.

[1]
This statement builds on ESMA's 17 April 2026 statement on the end of the MiCA transition period .

[2]
Applicable irrespective of whether national legal provisions in a Member State have been adapted to MiCA.

[3]
An exception applies where services are provided solely at the client's own initiative under the narrowly applicable reverse solicitation regime (see ESMA Guidelines on the circumvention of the reverse solicitation exemption under MiCA) .