[DigitalToday reporter Chi-gyu Hwang (황치규)] As the European Union’s transition period for MiCA has ended, crypto companies that have not been authorised can no longer legally provide services to EU customers.

Cointelegraph reported on July 3 (local time) that these companies could face sanctions, including multimillion-euro fines, if they do not wind down their operations.

With the transition ending, EU crypto regulation has entered its first full enforcement stage. MiCA sets common EU rules, but authorisation, supervision and enforcement are handled by national regulators. Industry and legal experts expect initial enforcement to differ because member states vary in resources, experience and supervisory priorities.

The cost of complying with MiCA is also significant. Nicola Massella, a partner at Storm Partners, estimated implementation costs for many crypto companies at 350,000 to 600,000 euros. Edwin Mata, chief executive of Bricken, said costs could rise to as much as 2 million euros depending on a company’s size, services and level of compliance preparation. Experts, however, judge the financial and regulatory risks of continuing to operate without authorisation to be greater.

Penalties can also be severe. Massella said the European Banking Authority proposed on June 26 raising penalties for some stablecoin-related violations to as high as 12.5 percent of annual revenue.

The supervisory framework is divided. The European Securities and Markets Authority coordinates supervision across member states and manages a public register, while the EBA directly supervises issuers of significant stablecoins.