The transition period for the EU's MiCA (Mini-Asset Regulatory Framework) for the cryptocurrency market will end on July 1st. An analysis released by OKX Europe shows that as this deadline approaches, approximately 60% of European cryptocurrency users are still using exchanges that are not authorized by MiCA.
This analysis cites download data from Sensor Tower and licensing information compiled by thecryptoregister.com. The latter organizes licensing records disclosed by the European Securities and Markets Authority (ESMA) and national regulatory agencies.
Enforcement risks will increase after July 1st.
According to MiCA requirements, crypto companies offering services to the EU market need to obtain crypto asset service provider status in order to operate legally within the EU. After the transition period ends, platforms that have not yet been approved may face regulatory enforcement if they continue to operate.
OKX Europe CEO Erald Ghoos stated that many European users may not be aware whether the platforms they use possess a MiCA license, and enforcement action is imminent. He urged users to check their exchanges' authorization status before the transition period ends.
France has requested the platform to complete the application as soon as possible.
ESMA has provided a MiCA registration information lookup service on its official website. Users can use this information to confirm whether their platform has been authorized, is still under a temporary transitional arrangement, or has not yet obtained a license.
As the deadline approaches, some EU member states have begun to increase pressure. The French Financial Markets Authority recently warned crypto companies that they must complete their MiCA license applications by June 30, or they should cease providing services to local customers.
Unauthorized operation may result in fines.
Marie-Anne Barbat-Layani, Chairwoman of the French Financial Markets Authority (MFMA), recently stated that companies must complete the application process as soon as possible. French regulators also stated that companies whose applications are not approved should prepare an orderly exit strategy to allow customers to retrieve or transfer their crypto assets.
France has also warned that unauthorized platforms that continue to operate for users after the transition period ends may face blacklisting, public warnings, fines, or even legal action.
Additional information:Under the MiCA mechanism, once a company is approved in one EU country, it can provide services to all 27 member states through a "passport-through" arrangement. Some regulatory bodies have therefore expressed concern about the differences in review standards across different regions.
