The European Union's Markets in Crypto-Assets Regulation transitional window closed on 1 July 2026, requiring all crypto-asset service providers across 27 EU member states to obtain full Crypto-Asset Service Provider authorisation. Of the more than 1,200 firms previously registered under national regimes, only around 17–20% secured authorisation by the deadline, with unlicensed platforms beginning to restrict user accounts to withdrawal-only mode. The transition stems from MiCA's formal application to crypto service providers since 30 December 2024, which gave firms 18 months to comply with the new regulatory framework. The regulatory shift has created immediate market consequences, with fewer than 20 of the world's 100 largest exchanges holding a valid licence as of 8 July. Europe's crypto regulatory landscape has entered a new compliance era that distinguishes between national AML registrations and CASP authorisation, reshaping market access for both platforms and retail investors.
MiCA Deadline Results in Limited Exchange Licensing Across EU
MiCA has formally applied to crypto-asset service providers across all 27 EU member states since 30 December 2024. Firms holding national licences received 18 months to obtain full CASP authorisation. Of the more than 1,200 firms previously registered under national regimes, only around 17–20% secured that authorisation in time. For the rest, the choice was to obtain a licence, exit the EU market, or continue operating illegally.
Unlicensed platforms began restricting user accounts to withdrawal-only mode, disabling deposits, and in some cases halting trading altogether. Any exchange, custodian, or broker continuing to serve EU clients without CASP authorisation now operates in breach of EU law. Of the world's 100 largest exchanges, fewer than 20 held a valid licence as of 8 July.
Paybis Survey Reveals User Platform Selection Priorities
Paybis published survey findings from over 850 European crypto users. When asked what would guide their choice of a new platform, respondents ranked fees and pricing first at 31.8%. Trustpilot and Google reviews ranked second at 26.9%, ahead of personal recommendations at 21.6%. Introductory offers ranked last at 19.7%.
The report attributes the fee priority to users being pushed off their existing platform and not willing to pay a premium on top of the disruption itself. The report attributes the trust in aggregated public sentiment over individual opinions to users needing reliability when switching is mandatory rather than voluntary.
European Crypto Users Show Low Awareness of Exchange Compliance Status
Nearly 7 in 10 respondents — 68.6% — do not know whether their current exchange holds MiCA authorisation. National AML registrations, which many exchanges held before the deadline, were widely understood as a form of institutional legitimacy. CASP authorisation under MiCA is a categorically different credential, but that distinction was not communicated at scale.
For a large share of users, the first indication that their platform lost the right to serve them will come not from a compliance notice, but from a frozen account or a force-closed position.
Paybis CEO Highlights Regulatory Information Gap
Innokenty Isers, Co-Founder and CEO of Paybis, stated: "Seven in ten crypto users don't know if the exchange that holds their money can fully operate in Europe anymore. Most of the platforms that just lost the right to serve European users held a national AML registration, not a CASP authorisation. Those are not the same thing, and until this month very few users had any reason to know the difference."
The report's conclusion states: "The MiCA migration of 2026 isn't only a story about exchanges losing their licences — it's a story about users who are ready for change but poorly informed about when and why it applies to them."
FAQ
What is the MiCA compliance deadline for crypto exchanges in Europe?
The transitional window under the EU's Markets in Crypto-Assets Regulation closed on 1 July 2026. Firms holding national licences had 18 months from 30 December 2024 to obtain full CASP authorisation.
How many European crypto users know their exchange's MiCA authorization status?
According to a Paybis survey of over 850 European crypto users, 68.6% of respondents do not know whether their current exchange holds MiCA authorisation.
What factors do European crypto users prioritize when selecting a new platform?
Fees and pricing ranked first at 31.8%, followed by Trustpilot and Google reviews at 26.9%, personal recommendations at 21.6%, and introductory offers at 19.7%.
