Crypto exchange Kraken said on Tuesday that the end of the EU’s MiCA transitional period on 1 July 2026 creates immediate counterparty risk for institutions using unauthorised custodians, OTC desks, or execution venues across the EEA.
The post presents the deadline as an operational issue. Institutions that keep assets with, or execute through, a non-authorised provider face compliance gaps that affect CCO sign-off, LP reporting, and audit defensibility, Kraken said.
“For institutions, the stakes are higher than for retail. CCO sign-off, LP reporting, and audit defensibility all depend on who you hold assets with and who you execute through,” the post said.
ESMA’s 17 April statement confirmed that, after 1 July, any entity providing crypto-asset services to EU clients without a MiCA licence “must cease offering such services.” The regulator also said unauthorised CASPs should have orderly wind-down plans in place by the deadline, including client offboarding to authorised providers or self-hosted wallets.
Kraken said it holds MiCA authorisation through the Central Bank of Ireland and MiFID permissions for derivatives via CySEC, and that its platform will remain open after 1 July with no product wind-downs.
Kraken also noted that, among the more than 1,200 firms that held pre-MiCA national registrations, only a small fraction have converted to full CASP authorisation.
