EU Crypto Licensing Deadline Sparks Mass Exits and Regulatory Crackdown

The European Union's transitional period for crypto licensing has come to an end on July 1st, affecting numerous unlicensed exchanges and stripping Tether's USDT of its last regulated foothold in the region.

Only around 194 crypto firms had secured a MiCA license by May 2026, despite over 3,000 having once held national registrations across the EU. Supervisors expect approximately 75% of these older firms to lose their right to serve European clients as a result.

The largest stablecoin, USDT, with a value of around $175 billion, has vanished from all licensed EU venues after its issuer, Tether, declined to seek authorization. Major exchanges such as Binance, Coinbase, Kraken, and Crypto.com had already pulled USDT for European users in previous months.

France has taken the strictest stance among member states, with its markets regulator warning that firms continuing to serve EU customers without a license face potential criminal charges, including penalties of up to two years in prison and a 30,000 euro fine.