Upon the end of the transition period of the EU Regulation on Encrypted Asset Markets, unauthorized platforms are accelerating their withdrawal from the market. According to the regulator, in recent weeks more than 1700 unlicensed encryption platforms have ceased to provide services to EU users, and a large number of users have faced problems with asset relocation and platform re-election.

Centralized stoppage after 1 July

The MiCA entered into full force on 1 July 2026. The new regulations replace the previously relatively decentralized registration arrangements of member States with a uniform EU licensing system, covering operations such as hosting, transfers, exchange and trading premises.

After the end of the transition period, the unauthorised platform will no longer have a legal business base if it continues to provide services to EU clients. It was reported that the stoppage had become a major concentration of the European encryption industry in recent years.

There are only about 323 licensed institutions in the EU.

According to the official data cited in the text, only 323 institutions throughout the EU currently hold valid MiCA authorizations. Compared to the number of platforms previously operating under a more liberal framework in various countries, the number of licensed institutions remains small.

In addition, BeInCrypto's statistics on the European Securities and Markets Authority's public directory, with approximately 324 registered legal entities in mid-August, most of the approved operations concentrated on hosting, asset transfer or currency exchange, not all of which would have been able to operate a trading platform.

The statistics also mention that only 21 entities in the public directory have been authorized to operate trading platforms. This means the acquisition of a MiCA licence plate, which does not amount to the qualification of an order book.

The risk of fraud due to the migration of users

The regulator estimates that there may be at most 10 million users who need to transfer hold from the shut-down platform to the licensed institution. Large-scale migration takes place in a short period of time, tends to magnify information asymmetries and leaves room for fraud.

Regulators have warned of frauds in the market that are impersonating the MiCA-licensed platform, mainly targeting users who are looking for alternative platforms. For ordinary users, search results, social media links or active private letters may be used by outlaws.

The regulator suggested that users should check the status of the official MiCA directory for the authorization of service providers before transferring assets, rather than relying on advertising, social platform information or third-party guidance alone.

Mobility to compliance platform

With the withdrawal of a large number of unlicensed platforms, the European Union ' s encrypted trade mobility and user confidence are further concentrating on a few compliance agencies. In the short term, adjustments may be made to the user transaction path, platform selection and transaction distribution.

Additional information:It was reported that, as of mid-August, exchanges such as Kraken, Coinbase, Bitstamp, OKX, Cripto.com, Gate, Gemini, KuCoin and Bybit had obtained licences in the following Member States: Ireland, Luxembourg, Malta and Austria; and Binance had not yet recorded a corresponding authorization on the relevant public list.