EU crypto rulebook faces enforcement challenge as MiCA transition ends
MiCA’s transition period has ended, and crypto firms without EU authorization can no longer legally serve EU clients. Unlicensed providers are expected to shut down or face heavy fines and other enforcement action. Compliance can cost roughly €350,000 to €2 million, but penalties for violations can start at €5 million or 5% of annual turnover, with some stablecoin breaches potentially facing higher sanctions. Enforcement is now the key test for MiCA. National competent authorities handle licensing and supervision, while ESMA coordinates oversight and the EBA directly supervises significant stablecoin issuers. Early enforcement is likely to vary across member states because regulators differ in resources and priorities, creating some risk of regulatory arbitrage. Over time, enforcement is expected to become more systematic as authorities share information and identify unauthorized providers. Several EU regulators have already warned firms to wind down if they lack authorization.
