EU Crypto Licensing Deadline Sparks Chaos for Unregulated Exchanges

The European Union's MiCA (Markets in Crypto-Assets) framework has reached its endgame. Starting July 1, crypto firms must have a license to operate within the EU or face severe consequences. As of May 2026, only around 194 companies had secured a MiCA license out of over 3,000 that were once registered.

This means that roughly 75% of older firms are expected to lose their right to serve EU clients. Tether's USDT stablecoin has been particularly affected, disappearing from every licensed EU venue. Major exchanges such as Binance, Coinbase, Kraken, and Crypto.com have already pulled USDT for European users.

France is taking a hard stance on unlicensed firms, warning that those continuing to serve EU customers without authorization after the cutoff date face criminal charges. Marie-Anne Barbat-Layani, chair of France's markets regulator, stated that companies had 'run out of road' in securing licenses, as it takes months of regulatory review.

Circle's tokens, including USDC and EURC, stand to gain from this reshuffle as they are the only top-ten stablecoins with full MiCA clearance. Tether has refused to comply with the reserve rules behind its exit, citing incompatibility with its model.