EU Crypto Licensing Deadline Hits: 75% of Firms May Lose EU Client Access

European regulators have announced that the transitional window for crypto licensing under MiCA has closed, effective July 1. This move affects over 3,000 firms that once held national registrations across the region, with only about 194 having secured a license by May 2026.

The largest stablecoin, USDT, issued by Tether, is at the center of this upheaval, with Binance, Coinbase, Kraken, and Crypto.com all pulling it for European users after the company declined to seek authorization. France has taken the hardest line against unlicensed firms, warning that those still serving EU customers without a license face criminal charges.

Tether's chief executive Paolo Ardoino has cited the requirement to park 60% of token reserves in European banks as incompatible with its model, leading the company to back compliant issuers instead. This move has squeezed out USDT from every licensed EU venue, leaving Circle's tokens, USDC and EURC, as the only top-ten stablecoins with full MiCA clearance.