The End Of Transitional Periods Under MiCA And Its Consequences

Introduction

On 17 April 2026 ESMA released a statement regarding the end of transitional periods under the MiCA regime. In ESMA’s previous statements about supervisory convergence, transitional measures and the end of transitional periods, ESMA has consistently placed importance on authorisation, transition, and finally, client protection.

The transitional period will elapse across the EU on 1 July 2026. When this date is elapsed any entity providing crypto-asset services to EU clients without a MiCA licence will be in breach of EU law and must cease offering such services.

For unauthorised CASPs

Any provider that hasn't obtained MiCA authorisation must have a credible, ready-to-execute wind-down plan in place. This means giving clients advance notice, arranging the transfer of their crypto-assets to either an authorised CASP or a self-hosted wallet, and ensuring the whole process complies with EU conduct, prudential, and AML/CFT rules. By 1 July 2026, the plan must be fully implemented with no exceptions.

For authorised CASPs

Authorised providers are expected to actively onboard EU clients who were previously serviced by unauthorised entities before the deadline arrives. All onboarding must meet AML/CFT standards. Importantly, custody and certain other services cannot be outsourced to non-EU or unauthorised third-country entities meaning that any such arrangements must be unwound.

For national regulators (NCAs)

NCAs are expected to check that wind-down plans exist and are fit for purpose, take enforcement action against unauthorised providers after the deadline, and scrutinise how authorised CASPs are handling client migration.

For consumers

• Check your provider is listed in the ESMA Interim MiCA Register.
• Know which legal entity is actually serving you because MiCA protections apply only to the specific authorised EU entity, not to other group companies or non-EU arms operating under the same brand.
• Act promptly if your provider isn't authorised by moving your assets to an authorised provider or a self-hosted wallet, as remaining with an unauthorised provider carries real legal and financial risk.

Possible Solutions for CASPs

1. Seek Full MiCA Authorisation. Apply directly to a National Competent Authority for a licence. This is the most autonomous route but requires the most preparation. It requires well-kept governance structures, capital adequacy, AML/CFT frameworks, and ensuring all custody arrangements remain EU-domiciled. Time is extremely tight given the 1 July deadline.
2. Partner with an Authorised CASP. The fastest route to continued EU market access. An unauthorised CASP forms a white-label, referral, or co-brand arrangement with an already-licensed entity, migrating its client book across before the deadline. The partner handles the regulatory obligations whilst the originating firm maintains a commercial relationship with the clients. It is important to note that all client transfers must meet AML/CFT onboarding standards and clients must be clearly informed which legal entity is serving them. 
3. Orderly Wind-Down & Client Transfer. Where authorisation or a partnership isn't achievable in time, ESMA requires a structured exit. In order to achieve a structured exit, advance client notice must be given, asset transfers to authorised CASPs must be transferred or stored on self-hosted wallets, and full compliance with conduct and AML/CFT rules must be shown throughout. NCAs will actively scrutinise these plans, so early engagement is advisable.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.