ESMA calls for wind-down of unauthorised CASPs
24 June 2026 Europe
Image: krungchingpixs/stock.adobe.com
The European Securities and Markets Authority (ESMA) has called on unauthorised crypto-asset service providers (CASPs) to take immediate steps to wind down their EU activities, with the Markets in Crypto-Assets (MiCA) regulation transitional period set to end on 1 July 2026.
ESMA expects the unauthorised CASPs to safeguard the interests of clients and mitigate risks to market integrity during their exit procedures, and to communicate clearly, promptly, and repeatedly with clients about the measures taken to safeguard their assets and the timeline to dispose of, transfer, reallocate, or close their positions.
The CASPs must also convey a deadline by which residual positions would be closed automatically and provide further information about client protection requirements.
They must immediately cease the onboarding of new EU clients, refrain from opening new client relationships or accounts, and end marketing activities and solicitation.
CASPs unlicensed under MiCA must also limit the provision of services to actions necessary to sell or transfer crypto-assets, reallocate assets, or close positions, with custody of clients’ cryptoassets only permitted for the period strictly necessary for an orderly exit.
ESMA says the wind-down arrangements should be implemented in compliance with relevant EU or national conduct laws and anti-money laundering (AML) and counter-terrorist financing (CTF) compliance.
In situations where a client is transferred to a MiCA-authorised CASP, the firm should conduct the necessary onboarding procedures, including due diligence, AML, and CTF checks.
ESMA warns that CASPs established outside the EU cannot provide MiCA services to or solicit EU clients, and this is applicable in a business-to-business context.
It also reminds firms that MiCA regulation prohibits the outsourcing or delegation of custody services to unauthorised entities.
ESMA expects the unauthorised CASPs to safeguard the interests of clients and mitigate risks to market integrity during their exit procedures, and to communicate clearly, promptly, and repeatedly with clients about the measures taken to safeguard their assets and the timeline to dispose of, transfer, reallocate, or close their positions.
The CASPs must also convey a deadline by which residual positions would be closed automatically and provide further information about client protection requirements.
They must immediately cease the onboarding of new EU clients, refrain from opening new client relationships or accounts, and end marketing activities and solicitation.
CASPs unlicensed under MiCA must also limit the provision of services to actions necessary to sell or transfer crypto-assets, reallocate assets, or close positions, with custody of clients’ cryptoassets only permitted for the period strictly necessary for an orderly exit.
ESMA says the wind-down arrangements should be implemented in compliance with relevant EU or national conduct laws and anti-money laundering (AML) and counter-terrorist financing (CTF) compliance.
In situations where a client is transferred to a MiCA-authorised CASP, the firm should conduct the necessary onboarding procedures, including due diligence, AML, and CTF checks.
ESMA warns that CASPs established outside the EU cannot provide MiCA services to or solicit EU clients, and this is applicable in a business-to-business context.
It also reminds firms that MiCA regulation prohibits the outsourcing or delegation of custody services to unauthorised entities.
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