The grandfathering period under the Markets in Crypto-Assets (MiCA) regulation has sparked considerable debate in the crypto world, and for good reason. While it offers a transitional window for crypto-asset service providers (CASPs) operating under existing national frameworks, it’s by no means a ticket to automatic compliance.
In the final post of a three-part series with 21 Analytics and crypto compliance specialist Delphine Forma, they break down MiCA’s grandfathering period, explore the confusion it’s causing, and outline what CASPs need to do to get ready.
What Is the MiCA Grandfathering Period?
Delphine: MiCA, which was published in June 2023, introduces a unified regulatory framework for crypto-assets across the EU. The grandfathering period enables CASPs that were already operating legally under national laws to continue their activities until 1 July 2026. However, the duration of this period varies by Member State.
For example, Lithuania allows only 5 months; the Netherlands, Latvia, Poland, and Hungary allow 6 months; Austria and Germany provide 12 months; and France and Malta offer 18 months. [Scroll to the end of this article for the full list.]
It’s important to understand that during this period, CASPs cannot benefit from the MiCA passport, which permits cross-border service provision within the EU without further national authorisations.
Additionally, Title VI of MiCA, which deals with the prevention and prohibition of market abuse, applies immediately. There is no grandfathering exemption for this section.
Why Is the Grandfathering Period Causing Confusion?
Delphine: One major issue is the length of the grandfathering period. Given that MiCA has been in development for several years and was finalised in mid-2023, many believe the period should be shorter. ESMA has recommended limiting it to 12 months. The varying timelines across countries introduce unnecessary complexity, especially for CASPs operating in multiple jurisdictions.
The confusion is further compounded by overlapping regulations, such as the Transfer of Funds Regulation (TFR) and the Anti-Money Laundering Directives (AMLD). While MiCA covers the licensing of CASPs, it doesn’t include KYC obligations or transaction monitoring, these remain under AMLDs and national rules. A harmonised EU AML regime is expected when the AML Regulation comes into force in July 2027.
It’s also worth noting that the TFR, which took effect on 30 December 2024, does not include a grandfathering period, unlike MiCA.
“One of the main issues with the grandfathering period is its length. The extended timeline creates regulatory complexity.”
What Are the Options for CASPs Not Yet Licensed under MiCA?
Delphine: CASPs in this situation have a few paths forward:
- Those legally operating before 30 December 2024 can use the grandfathering period—but only within the Member State where they are registered, and for the length permitted by that country.
- CASPs based in the EU but not yet authorised should apply for a MiCA licence in a jurisdiction currently accepting applications, most EU countries are now open, though some exceptions remain (e.g. Belgium and Portugal).
- Non-EU CASPs might consider reverse solicitation to serve EU clients, but this path is legally risky. ESMA’s final guidelines on reverse solicitation make it nearly impossible to rely on this exception safely.
What’s the Current State of MiCA Licensing?
Delphine: So far, only a limited number of CASPs have secured MiCA licences:
- The Netherlands (AFM): MoonPay, HiddenRoad, Zebedee, Bitstaete
- Germany (BaFin): Börse Stuttgart Digital Custody (via MiFID extension), Bitpanda Asset Management, Crypto Finance, Tradias
- Malta: Crypto.com, OKX, ZillionBits, Bitpanda
- Cyprus: E-toro
- Luxembourg: Clearstream Banking SA
- Spain: Banco Bilbao Vizcaya Argentaria SA
These early approvals show that while the licensing process is progressing, uptake remains slow, contributing to ongoing uncertainty in the market.
Delphine’s Final Thoughts
The MiCA grandfathering period provides temporary breathing space, but it’s no excuse for inaction. With staggered national timelines, the live TFR, and immediate enforcement of MiCA’s market abuse provisions, CASPs must act now to prepare. Securing a MiCA licence early is the most effective way to stay ahead of compliance hurdles and ensure operational continuity across the EU.
Join Delphine’s Crypto Compliance & Legal Telegram group to stay connected.
List of Grandfathering Periods
6 Months
- Finland
- Hungary
- Latvia
- Lithuania (5 months)
- Netherlands
- Poland
- Slovenia
12 Months
- Austria
- Bulgaria
- Germany
- Greece
- Ireland
- Italy
- Liechtenstein (EEA Country)
- Slovakia
- Spain
- Sweden (9 months)
18 Months
- Croatia
- Cyprus
- Czechia
- Denmark
- Estonia
- France
- Iceland (EEA Country)
- Luxemborg
- Malta
- Romania
About Delphine Forma
Delphine Forma is the Policy Head for Europe at Solidus Labs. She has experience at BitMEX and leading banks in the UK. She holds two master’s degrees in law and graduated from Sciences Po.
She is also the founder of the Crypto Compliance and Legal Telegram group, an advisor to startups across Europe and Switzerland, an ambassador for the Association of Women in Crypto and the Global Blockchain Business Council (GBBC), and the host of the MiCA Masters podcast.
Read more articles by Delphine:
Source: 21 Analytics