With the European Union's temporary grace period under its crypto rules, MiCA, ending on July 1, users of exchanges, brokers and wallet services that have not secured licences are increasingly likely to face account blocks and withdrawal instructions.

CryptoSlate, a blockchain outlet, reported on Saturday that after the grace period expires, many operators that have been doing business on the basis of existing registrations are expected to struggle to continue serving EU customers.

MiCA requires crypto firms serving EU customers to obtain formal authorisation. As of May 2026, only 194 entities across the EU had obtained authorisation, including banks. Of the more than 3,000 registered operators as of 2024, about 75 percent were expected to lose their right to operate when the grace period ends. With national regulators taking months to review applications, firms that have not yet been authorised effectively face difficulty getting approval by the deadline.

Unlicensed operators will therefore need to pursue options such as winding down, transferring customers to authorised affiliates or competitors, or withdrawing from the European market. The European Securities and Markets Authority, ESMA, has required such exit plans to be prepared before July 1.

The impact on users will differ by platform. Exchanges already authorised under MiCA, or operating through authorised European entities, are expected to allow account use much as before. Platforms that move customers to authorised entities may require renewed acceptance of terms and re-verification of identity. The EU also requires both identity checks and anti-money laundering screening during the transfer of existing users.

Platforms that fail to obtain authorisation are likely to block new deposits and instruct users to move assets to personal wallets or other authorised exchanges. France is cited in particular as a country with strict enforcement. The French financial regulator, the AMF, notified unlicensed firms that they must stop operating from July 1 and warned that violations could constitute a criminal offence under French law, punishable by up to 2 years in prison and a 30,000 euro fine.

The AMF can place unlicensed operators on a public blacklist, issue public warnings or ask courts to block websites. AMF commissioner Marianne Barbat-Layani said at a May 28 event in Paris that companies' applications had entered an urgent phase and warned that firms continuing to serve EU customers without a licence could end up in court.

Even so, ordinary users are not structured to bear direct liability for regulatory violations. Users can check whether the platform they use holds its own MiCA authorisation, or operates through an authorised European entity, by consulting their national regulator's register or the EU's central list of authorisations. A functioning app or website alone cannot confirm service continuity, and official registers will be the standard for determining lawful operation after the deadline.

The move is also expected to lead to a reshaping of Europe's crypto market. As the cost of MiCA compliance rises, the market is increasingly likely to be reorganised around banks, large exchanges and well-capitalised platforms that can meet legal responses, capital requirements and internal control staffing. With more than 1,400 previously registered firms in Poland alone, smaller operators across Europe are more likely to disappear first.

MiCA's single-market vision has also been put to the test. The aim is a passporting system that allows firms authorised in one country to operate across all 27 EU member states. In practice, however, authorisations are issued separately by regulators in each of the 27 countries, and differences in review speed and standards have emerged as issues. Malta in particular has come under ESMA scrutiny because a small regulator approved many authorisations in a short period. Barbat-Layani said France could refuse authorisations issued by countries it does not trust, calling such a situation a "serious collective failure."

The stablecoin market is already cited as a case where MiCA's impact has materialised. USDT, issued by Tether and the world's largest stablecoin, did not meet MiCA requirements. As a result, Coinbase, Kraken, Crypto.com and Binance removed it from their European platforms. Circle's USDC and euro-based EURC, by contrast, maintained their positions in the market. That means similar pressure is now spreading to exchanges and brokers.

In the coming weeks, large exchanges may announce transfers of European entities, regulators may issue warnings and publish blacklists, services may be blocked in France, Spain, Italy and Germany, last-minute authorisations may be granted, and users may receive withdrawal and account transfer instructions. The July 1 deadline is both the implementation of a system for protecting European users and a turning point that is expected to reveal whether each platform actually has the qualifications to operate legally.