The grandfather period has led to half of EU member states

• MiCA is now absolutely applied in 50% of the EU, ending the normal VASP regime.
• The phase-out interval has led to 15 of the 30 jurisdictions.
• By 1 July 2026, the grandparent interval will finish throughout the EU.

Europe’s long-anticipated regulatory reform has reached its midway level. As of in the present day, Regulation (EU) 2023/1114 (MiCA) on Cryptoassets Markets is absolutely in pressure in half (50%) of relevant jurisdictions. This successfully marks the top of the normal VASP framework.

Ending grandparenting in 15 jurisdictions

In the beginning of 2026, the grandparenting (transition) interval ended within the first group of nations, 15 out of a complete of 30 jurisdictions (27 EU Member States and three EEA nations: Iceland, Norway and Liechtenstein).

Particularly, the grandfathering regime was a short lived reduction mechanism that allowed digital forex companies working underneath outdated home VASP licenses to proceed working whereas complying with MiCA necessities.

Transition interval closes early

Throughout this transition interval, uniquely set by every jurisdiction, companies had been allowed to function as traditional whereas getting ready and submitting purposes for built-in MiCA licenses, also called CASP licenses. Nevertheless, that interval has not but closed on July 1, 2026.

In half of European jurisdictions, transitional measures have already fully expired. Time is operating out for the remainder of the nation. The demonetization interval will finish in six months, and from July 1, 2026, all crypto corporations working inside the EU can be required to carry a full MiCA license or stop working within the area.

Greater requirements, fewer licensed corporations

The transition to MiCA’s extra stringent requirements has confirmed to be removed from simple. For corporations which have historically relied on extra permissive nationwide techniques, this course of could be like taking part in flooring is mule on an empty subject.

Assembly a harmonized and extremely demanding rulebook protecting areas comparable to minimal share capital (at present raised from €50,000 to €150,000 primarily based on CASP license class), governance, substance and client safety has turn out to be really disruptive for corporations with insufficient current buildings. It’s estimated that roughly 75% of companies will lose their lively registration standing as soon as the phase-out interval ends.

Nationwide regulators elevate requirements past MiCA

Compounding the problem is the likelihood that regulators in any of the 30 relevant jurisdictions could impose necessities that transcend the MiCA baseline. In Germany, France, and different extremely regulated member states, authorities have raised substantive and operational requirements, growing each prices and compliance complexity.

French regulators are contemplating holding the door closed by refusing to challenge EU passports in some circumstances. They cited considerations that some crypto corporations could search the least demanding jurisdictions to achieve entry throughout the EU with much less oversight.

Regardless of these hurdles, securing a CASP license in any member state unlocks EU-wide passporting rights and infrequently gives long-term strategic worth that outweighs short-term regulatory frictions. The principle problem lies in correctly managing licenses amid uneven deployment of MiCA and differing supervisory expectations from nation to nation, making it more and more tough to keep away from professional authorized help.

Assist from CASP licensing specialists is turning into important

For a lot of MiCA candidates, participating an skilled advisor with a monitor report of each pre-MiCA VASP licensure and post-MiCA CASP licensure can considerably shorten the timeline and improve the probability of acquiring a good choice from the Nationwide Competent Authority (NCA).

Corporations like Inteliumlaw present unparalleled help to cryptocurrency companies searching for entry to Europe’s harmonized market, from regulatory readiness assessments to end-to-end administration of the CASP software course of and regulatory engagement.

The period of grandparenting is coming to an finish throughout Europe, leaving MiCA licenses as the one viable and compliant path to function inside the EU. The disagreeable actuality is that going by means of this course of alone is a waste of time and capital, making certified regulatory legal professionals the brand new gold customary for severe market entrants.