the space of Europe’s cryptocurrency market underwent a significant transformation as the transition period for the Markets in Crypto-Assets Regulation (MiCAR) came to an end on July 1, 2026. This regulatory change has essentially shifted the market towards a more structured licensing framework for crypto service providers across the European Union.
A recent report from Chainalysis highlighted that crypto volumes in Europe hit a monthly peak of $234 billion in December 2024. From July 2024 to June 2025, major markets such as Germany, France, and the United Kingdom collectively processed hundreds of billions in crypto value. In light of this, MiCAR has enforced stricter authorization standards, requiring all virtual asset service providers to obtain a license to operate within the EU.
According to Luxembourg's CSSF, firms without authorization are no longer allowed to serve EU clients. Only around 230 out of 1,200 existing providers have successfully secured the necessary licenses, leaving many others scrambling for buyers or ultimately exiting the market. This regulation is now in effect across all 27 EU member states.
MiCAR has replaced the previously fragmented national registration system with a unified EU regulatory framework. The European Securities and Markets Authority (ESMA) has emphasized that the regulation enforces comprehensive protocols covering transparency, authorization, and supervision for crypto activities. This regulatory overhaul necessitates that companies obtain a specific license tied to a legal entity within the EU. As a result, marketing efforts, onboarding processes, and service continuity may be severely restricted for unauthorized firms.
On July 9, 2026, the OSL Group announced a major milestone, revealing that their European subsidiary received CASP authorization from Austria’s Financial Market Authority under MiCAR. This allows OSL to provide services throughout the European Economic Area, reinforcing their market presence. The license covers a spectrum of services including crypto custody, spot trading, and asset transfers.
As Europe transitions from a patchwork of local licensing regimes to a streamlined and harmonized EU passport for crypto service providers, the MiCAR regulation is poised to transform digital assets into reliable components of the financial system.
This material is informational and is not financial advice.
