MiCA after the transition period: What has changed for crypto companies in the EU since July 2026
On July 1, 2026, a significant milestone was reached for crypto businesses in the European Union: the maximum MiCA transition period for companies that previously provided crypto services under national regulations ended. Now, operating under the previous regime without MiCA authorization is significantly more difficult. ESMA states that companies that used the transition period could continue operating until July 1, 2026, or until they received or were denied MiCA authorization, whichever came first.
The transition period has ended
MiCA created uniform rules for issuers of crypto assets, stablecoins, and cryptocurrency service providers (CASPs) at the EU level. The main goal of the new regime is to replace disparate national requirements with a pan-European regulatory framework.
Until July 2026, some companies could use so-called grandfathering—continuing to operate under national legislation. After the end of the transition period, this option, in its maximum form, has disappeared.
This means that crypto exchanges, brokers, custodial services, and other service providers must obtain the appropriate CASP status or cease regulated activities.
MiCA license becomes key
For businesses working with EU clients, authorization is becoming a key factor in legal stability. Companies must comply with capital requirements, governance, internal controls, client asset protection, AML/CFT procedures, and operational organization.
At the same time, the MiCA license enables scaling operations across EU member states thanks to a pan-European approach and a mechanism for cross-border service provision.
What has changed for crypto companies?
After the end of the transition period, companies must pay more attention not only to obtaining authorization but also to ongoing compliance. Regulators have clearer grounds for monitoring CASP activities, and businesses must document compliance with established standards.
Corporate structure, management qualifications, risk management procedures, client asset protection, and operational transparency are particularly important. Meanwhile, regulation continues to evolve. In May 2026, the European Commission launched a consultation on the revision of MiCA to assess the current regulatory application and determine whether further changes are needed given the development of the crypto market.
What should crypto businesses do in 2026
For companies planning to operate in the European market, 2026 marks the final transition to a fully-fledged regulatory model. It is important to determine the necessary permits, prepare a corporate structure, AML/KYC policy, risk management procedures, and prepare a package of documents for the regulator in advance.
IT-OFFSHORE assists with entering the EU market
IT-OFFSHORE provides support to international businesses in choosing a jurisdiction, registering companies, and preparing solutions for regulated activities. Our specialists will help you assess MiCA requirements, select an appropriate structure, and prepare your business for working with European clients, taking into account current regulatory requirements.
