The European Banking Authority (EBA) has issued a significant warning regarding potential systemic risks emerging from cryptocurrency enterprises operating under pre-MiCA regulatory approvals. According to the EBA’s latest assessment, firms that received authorization before the Markets in Crypto-Assets (MiCA) framework implementation may present substantial vulnerabilities while continuing operations through the transitional period ending in 2026.
The regulatory body emphasized that these previously authorized entities, while compliant with earlier standards, now operate under interim provisions that may not fully align with MiCA’s comprehensive requirements. This regulatory gap creates potential challenges for maintaining consistent consumer protection standards and market integrity across the European Union’s financial landscape.
Financial stability concerns center around varying compliance levels among member states during this implementation phase. The EBA noted that divergent national approaches to supervising these transition-period operators could lead to regulatory arbitrage and uneven investor safeguards. The authority called for enhanced coordination between national competent authorities to ensure consistent application of supervisory standards.
As the 2026 deadline approaches, the EBA recommends that both regulators and cryptocurrency service providers accelerate their adaptation to MiCA’s full regulatory expectations. The warning serves as a crucial reminder for market participants to proactively align their operations with the incoming comprehensive regulatory framework to ensure seamless transition and maintain market confidence.
