EU Crypto Rulebook Faces Enforcement Challenge as MiCA Transition Ends
Vexoda Newsroom
As the EU’s MiCA regulation transition period concludes, crypto companies without authorization face multimillion-euro fines. National regulators will enforce MiCA inconsistently at first but aim for
The European Union's cryptocurrency industry has entered a new enforcement phase as the Markets in Crypto-Assets (MiCA) regulation’s transition period came to an end on July 1, 2026. Companies without MiCA authorization can no longer legally serve EU clients and are required to wind down operations or face severe penalties.
Experts estimate that compliance with MiCA costs between €350,000 ($400,000) and €2 million ($2.3 million), depending on the company’s size and services. The European Banking Authority (EBA) has proposed increasing fines for certain breaches to up to 12.5% of annual turnover.
While MiCA creates a single EU rulebook, national competent authorities (NCAs) are responsible for authorizing, supervising, and enforcing the rules at the local level. The European Securities and Markets Authority (ESMA) coordinates supervision across member states but enforcement is expected to vary initially due to differences in resources and priorities among NCAs.
The lack of uniformity could create regulatory arbitrage opportunities. However, Grlica expects systematic enforcement over time as regulators share information and make it harder for non-compliant companies to obtain MiCA authorization later on.
Several EU regulators have issued notices reminding crypto companies that the transition period has ended. The Czech National Bank, in particular, can impose fines of up to 118.5 million Czech koruna ($5.6 million) or 5% of annual turnover for operating without authorization under its Financial Market Digitization Act.
This enforcement challenge marks MiCA’s first major test as regulators begin applying the EU's crypto rulebook in earnest, highlighting the importance of consistent application across member states to prevent regulatory arbitrage and ensure a level playing field for all market participants.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.