The July 1 MiCA Deadline: What Happens to CASPs That Aren't Ready

Published by Mintara Labs | February 11, 2026

There's a date that every crypto business in Europe should have circled: July 1, 2026. That's when MiCA's transitional period ends in most EU member states. After that, if you're providing crypto-asset services without a MiCA authorisation, you can't operate.

No extensions. No grace periods.

And yet, as of early 2026, a lot of CASPs are still running on grandfathered national registrations, many without a clear path to full MiCA authorisation. Here's what's actually happening on the ground.

The Grandfathering Cliff

MiCA's Article 143(3) gave existing crypto businesses a lifeline. If you were already providing crypto-asset services under your national laws before December 30, 2024, you're allowed to keep going until July 1, 2026, or until your MiCA application gets decided, whichever comes first [1].

This was supposed to be a transition window. Not a reason to put things off.

Some member states shortened this window. Others kept the full 18 months. But the final backstop is the same everywhere: July 1, 2026 [2].

ESMA has been pretty direct about this. In their December 2025 statement on transitional measures, they said they expect CASPs that aren't yet authorised under MiCA to have orderly wind-down plans in place for services in member states where the transitional period has already ended, and to have those plans ready for the remaining deadlines [3].

Where the Bottleneck Is

The authorisation process is more involved than a lot of CASPs expected. By the end of 2025, roughly 102 CASPs were fully authorised across the EU, with Germany and the Netherlands leading in terms of licenses issued [4]. That's 102 out of hundreds of entities that were operating under national frameworks.

Part of the bottleneck is administrative. ESMA launched a peer review of Malta's CASP authorisation process in April 2025 and published their findings in July 2025. While the review focused on one NCA, the recommendations are relevant across the EEA, covering things like how NCAs should assess business models, ICT architecture, and DORA compliance during authorisation [5].

But a lot of the bottleneck is on the CASP side too. Many smaller providers underestimated what MiCA actually requires: governance structures, fit-and-proper assessments, AML/KYC frameworks, ICT security that's compliant with DORA, and proof of prudential safeguards under Article 67.

That last one is where we see CASPs getting stuck the most.

The Prudential Safeguard Problem

To submit a complete MiCA application, you need to show you can meet Article 67's capital requirements. ESMA's regulatory technical standards say applicants have to provide a description of their prudential safeguards, including the amount covered by own funds and the amount covered by insurance, along with a copy of the signed insurance agreement [6].

Here's the catch: if you're going the insurance route, you need the policy in hand before you apply. NCAs want to see the actual signed agreement, not a promise that you'll sort it out later. And placing a MiCA-compliant insurance policy isn't something that happens overnight.

The insurance market for this specific product is still developing. Only a handful of carriers globally have the appetite and expertise to underwrite Article 67 policies. For a small CASP, the timeline from first conversation to policy in hand can be four to eight weeks.

So if you haven't started the process by now, you're already behind for a July 1 deadline.

The PSD2 Complication for EMT Providers

If your CASP handles e-money tokens, there's an extra layer. The EBA clarified in June 2025 that CASPs providing custody or transfer services for EMTs have to comply with both MiCA and PSD2 prudential requirements at the same time, with no way to count the same capital twice. The "no double use" rule is strict: one euro of capital can't satisfy two different regulatory requirements [7].

In practice, this means a Class 2 CASP handling EMTs needs EUR 125,000 under MiCA plus a separate capital requirement under PSD2. For smaller CASPs already tight on capital, this dual requirement makes compliance significantly more expensive.

What ESMA Is Telling NCAs

ESMA's recent guidance to national regulators is worth paying attention to. They've told NCAs to treat last-minute MiCA applications with considerable caution and to hold them to the same standard as any other application, even if that means the CASP has to wind down its services while the application is being assessed [3].

What this means in practice: NCAs are prioritising applications that are complete, well-documented, and show genuine readiness. An application with a signed insurance policy, clear governance, and evidence of operational compliance will move through faster than one that's been thrown together at the last minute.

What To Do If You're Behind

If you're reading this and you haven't started your MiCA authorisation yet, here's the honest picture: you're late, but maybe not too late.

Get in touch with your NCA now. Find out their current processing timeline and what they need from you. Sort your prudential safeguards first, because that's often the easiest piece to verify and the one NCAs look at early. If you're going the insurance route, talk to a specialist broker today. Not next month.

Have a wind-down plan ready. This isn't being pessimistic. It's what ESMA expects [3]. If your authorisation takes longer than July 1, you need to be able to show your NCA you can protect your clients through an orderly transition.

Consider a combination approach for capital. Some own funds plus insurance gives NCAs more confidence and gives you flexibility.

The CASPs that will get through this transition are the ones that treated it as urgent months ago. If you're starting now, speed and thoroughness aren't competing priorities. You need both.

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Mintara Labs works with European CASPs to place MiCA-compliant insurance policies through Lloyd's and London market brokers. If you need Article 67 insurance to complete your MiCA application, contact us at sree@mintaralabs.xyz.

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Sources

1. McCann FitzGerald, "MiCA: EU Regulates Crypto-Assets"

2. Ramparts, "MiCAR Implementation Update" (November 2025)

3. ESMA, "Statement on MiCA Transitional Measures" (December 4, 2025)

4. Zampa Partners, "One Year of MiCA: The Evolving Landscape of EU Crypto-Asset Regulation"

5. Hogan Lovells, "MiCA CASP Authorisations: ESMA Recommendations in Peer Review Report"

6. Law Firm Poland, "MiCA in Poland: Guidance on Capital Requirements" (September 2025)

7. Morgan Lewis, "E-Money Tokens: European Banking Authority Clarifies PSD2-MiCA Interplay - Implications for CASPs" (June 2025)