End of the MiCA’s transitional regime: what changes from July 1st?

The transitional period provided for in Regulation (EU) 2023/1114 on markets in crypto-assets ("MiCA"), transposed in Portugal by the Crypto-asset Market Regime, approved by Law No. 69/2025, of 22 December, ends on 1 July 2026. From that date, the rule is simple: crypto-asset service providers operating in the European Union can only continue to provide such services if they are authorised under MiCA or benefit from another legally applicable permissive event.

In Portugal, the Crypto-asset Market Regime followed the MiCA regulation, allowing certain entities registered with the Bank of Portugal under the previous regime for the prevention of money laundering and terrorist financing to continue to carry out the crypto-asset activities for which they were qualified until 1 July 2026 or until the granting or refusal of MiCA authorisation, whichever came first.

What happens from July 1st?

As of 1 July 2026, entities that have not obtained MiCA authorisation will no longer be able to provide crypto-asset services in the European Union. To this end, the provision of services to customers in the European Union without MiCA authorisation constitutes non-compliance with Union law and must cease, with the adoption of measures of orderly exit and safeguarding of the interests of customers.

In practice, unauthorised providers should stop accepting new clients, cease marketing and solicitation actions, and limit their actions to those acts that are essential to allow the transfer, sale or closure of client positions. The custody of clients' crypto-assets should only be maintained for the period strictly necessary for the orderly exit, with clear, timely and repeated communication to clients about applicable deadlines and measures. 

What about entities outside the European Union?

The end of the transitional regime is also relevant for entities established outside the European Union, which cannot provide crypto-asset services to clients in the European Union, nor solicit clients in the Union, except when the services are provided on the exclusive initiative of the client, within the strict framework of reverse solicitation. 

What are the consequences?

In Portugal, the provision of crypto-asset services without proper authorization, or outside the scope of the authorization granted, constitutes a very serious administrative offense. This conduct may give rise to fines, ancillary sanctions and preventive measures, including, when necessary, the preventive suspension of activities or the preventive closure of an establishment where illegal activity is carried out.

 For customers, the main impact is the need to confirm whether their provider is authorised under MiCA. ESMA recommends that clients verify the status of the provider in the applicable European Markets in Crypto-Assets Regulation (Markets in Crypto-Assets Regulation (MiCA)) and act promptly if the provider is not authorised, including, where appropriate, by transferring the crypto-assets to an authorised provider or to a self-custody wallet.

The end of the transitional period thus marks the passage to a new phase of the European crypto-asset market: more demanding, more supervised and focused on the authorization, governance, conduct and protection of customers."