The Markets in Crypto-Assets regulation became fully enforceable across the European Union on July 1, 2026. The date ended the national grandfathering and transitional periods that let firms operate under older local rules. Any company that serves customers in the bloc’s 27 member states now needs a MiCA license, known as CASP authorization. Providers without one had to stop offering services to EU users as of June 30.

The compliance gap remains wide. ESMA figures cited in press coverage show that only about 210 of more than 1,200 firms held authorization by late May. That leaves many providers facing suspension while their applications sit with national regulators. Some estimates suggest Europe could shrink from roughly 3,000 registered providers to a few hundred licensed ones. Millions of European users may need to move to an approved platform.

The rollout has split opinion over who benefits. Larger firms with capital and staff can absorb the cost of governance documentation and ongoing compliance procedures. SwissBorg, which secured a license through France’s regulator, is among the operators already cleared. Banks are also more willing to work with companies that hold a CASP authorization. Startups and smaller providers face a harder path, since licensing requires significant capital and continuous reporting.

Critics question both the design and the enforcement. Joseph Borg, a Maltese lawyer at WH Partners, argued that some regulators prefer a small number of large operators over a crowded market. Gate Group founder Lin Han questioned whether authorities can act against offshore platforms that keep reaching EU customers. ESMA has already labeled unlicensed firms as breaching EU law. The agency also warned against reverse solicitation, a tactic where offshore providers claim a customer approached them first to sidestep the rules.

For developers and product teams, the practical effect is a smaller pool of legal counterparties inside the bloc. Integrations with unlicensed exchanges and custodians carry new risk, since those services may go dark for EU traffic. Teams should confirm that any partner holds a valid CASP authorization and check which national regulator issued it. The coming months will test whether supervisors can process the remaining applications and police firms that operate from outside the EU.