- MiCA is now fully in force across 50% of the EU, ending legacy VASP regimes.
- The grandfathering period expired in 15 out of 30 jurisdictions.
- By July 1, 2026, the grandfathering period will end across the entire EU.
Europe’s long-anticipated regulatory reset has reached its halfway mark. As of today, Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA) is fully effective in half (50%) of the jurisdictions where it applies. This effectively brings legacy VASP frameworks to an end.
The End of Grandfathering in 15 Jurisdictions
At the start of 2026, the grandfathering (transitional) period expired in the first group of countries, bringing the total to 15 of 30 jurisdictions (the 27 EU member states plus the three EEA countries: Iceland, Norway, and Liechtenstein).
Notably, the grandfathering regime was a temporary relief mechanism that allowed crypto businesses operating under outdated national VASP licenses to continue operating while aligning with MiCA requirements.
Transitional Windows Are Closing Fast
During this transition window, set independently by each jurisdiction, firms were permitted to operate as usual while preparing and submitting applications for a unified MiCA license, also known as the CASP license. However, that window is yet to close on July 1st, 2026.
In half of the European jurisdictions, transitional safeguards have already expired in full. In the remaining countries, time is running out. The grandfathering period ends in six months, and from July 1, 2026, all crypto firms operating in the EU will be required to hold a full MiCA license or cease operations in the region.
Higher Standards, Fewer Authorized Firms
Transitioning to MiCA’s stricter standards is proving far from straightforward. For businesses that previously relied on more permissive national regimes, the process can feel like playing Floor Is Lava in an empty field.
Meeting a harmonized and significantly more demanding rulebook covering areas such as minimum share capital (now raised to €50,000-€150,000 based on the CASP license class), governance, substance, and consumer protection has been truly disruptive for firms whose existing structures fall short. As the grandfathering period ends, it is estimated that roughly 75% of businesses will lose a valid registration status.
National Regulators Raise the Bar Beyond MiCA
Compounding the challenge, regulators in any of the 30 applicable jurisdictions may impose requirements that go beyond MiCA’s baseline. In Germany, France, and other highly regulated member states, authorities have raised the bar on substance and operational presence, increasing both costs and compliance complexity.
French regulators have even considered keeping the door closed, refusing EU passporting in certain cases. They cited concerns that some crypto firms may seek out the least demanding jurisdiction to gain EU-wide access under lighter supervision.
Despite these hurdles, securing a CASP license in any member state unlocks EU-wide passporting rights, offering long-term strategic value that often outweighs short-term regulatory friction. The primary challenge lies in navigating licensing amid an uneven MiCA rollout and country-specific supervisory expectations, making specialist legal support increasingly difficult to avoid.
CASP License Specialist Support Is Becoming Essential
For many MiCA applicants, engaging experienced advisors with a proven track record in both pre-MiCA VASP licensing and post-MiCA CASP authorizations can materially accelerate timelines and improve the likelihood of a favorable decision from the national competent authority (NCA).
From regulatory readiness assessments to end-to-end management of the CASP application process and regulator engagement, firms such as Inteliumlaw offer unparalleled support to crypto businesses seeking access to Europe’s harmonized market.
The grandfathering era is drawing to a close across Europe, leaving the MiCA license as the only viable, compliant pathway to operate in the EU. The uncomfortable reality is that navigating the process alone often results in wasted time and capital, making qualified regulatory counsel the emerging gold standard for serious market entrants.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/mica-grandfathering-period-ends-europe/
