European supervisors revoke licenses for over 1,000 crypto firms under MiCA, leaving only 323 authorized
Executive summary: European supervisors have withdrawn licenses from over 1,000 cryptocurrency firms in the EU, permitting only 323 to continue operating under the MiCA regulatory framework. This action significantly reduces the number of legal crypto service providers in Europe, increasing compliance costs and market consolidation while targeting high-risk entities linked to illicit finance.
Who is involved: European banking and financial supervisors (EBA, ESMA, EIOPA), TRM consultancy, unauthorized crypto firms, and licensed entities operating under MiCA.
Likely next: Continued supervisory reviews, potential enforcement actions against non-compliant firms, and market shifts toward licensed providers as the October 2026 MiCA compliance deadline approaches.
European regulators have removed authorization from more than 1,000 cryptoasset firms operating in the EU, citing non-compliance with the Markets in Crypto-Assets (MiCA) regulation. According to TRM consultancy, only 323 of the 1,343 pre-regulation firms have secured licenses, with 12% of unauthorized entities deemed high-risk. The move underscores the EU’s stringent enforcement of its crypto framework, aiming to mitigate illicit activity and investor exposure.
Timeline
- — Los supervisores europeos dejan sin licencia a más de mil empresas cripto (El País — Economía)
- — Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (Official Journal of the European Union)
Analysis — what this means
Likely next events
- MiCA full enforcement begins December 30, 2026, requiring all crypto service providers to be licensed
- TRM to release follow-up report on illicit transaction flows among unauthorized entities by September 2026
- National competent authorities to publish updated lists of registered crypto providers by October 2026
Sectors affected
- Cryptocurrency exchanges
- Crypto custodial services
- Digital asset trading platforms
- Wallet providers in the EU
Regulatory implications
- MiCA Article 9: Mandatory licensing for crypto-asset service providers (CASPs)
- EBA Guidelines on money laundering risks: Enhanced due diligence for unlicensed entities
- ESMA supervision convergence: Coordinated enforcement across EU member states by Q1 2027
Historical parallels
- FTX collapse (2022): Prompted global regulatory scrutiny of crypto exchanges
- China’s crypto ban (2021): Led to mass exodus of mining and trading operations
- Binance regulatory settlements (2023): Resulted in licensing withdrawals across multiple EU jurisdictions
Sources
- Los supervisores europeos dejan sin licencia a más de mil empresas cripto — El País — Economía
- Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets — Official Journal of the European Union