EU Enforces MiCA Crypto Rulebook, Unauthorized Firms Face Fines

The transition period for the EU's Markets in Crypto-Assets (MiCA) regulation ended on July 1, meaning crypto firms without MiCA authorization can no longer serve EU clients and may face fines.

The regulation, adopted in 2023, establishes a single rulebook for crypto service providers across the bloc, and the enforcement phase began as national authorities start supervising compliance.

Compliance costs range from about €350,000 to €600,000 for many firms, with larger companies incurring up to €2 million, according to executives. Penalties for violations start at €5 million or 5% of annual turnover, and the European Banking Authority proposed in June to raise certain penalties to as much as 12.5% of turnover for stablecoin breaches. National competent authorities, such as the Czech National Bank, can impose sanctions up to 118.5 million Czech koruna or 5% of turnover, whichever is greater. The European Securities and Markets Authority coordinates supervision and maintains a public register of authorized providers, while the European Banking Authority oversees large stablecoin issuers. Industry representatives said enforcement will likely vary across member states because of differing resources and priorities, creating potential regulatory arbitrage. Some authorities have issued reminders to firms to wind down operations, and several EU regulators have not yet responded to inquiries about their enforcement plans.

The experience is expected to shape future supervisory practices as regulators share information and refine the application of MiCA across the EU.