reset

The clock is running down on the most consequential deadline the crypto sector has faced in Europe.

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From the start of July, the transitional window under the Markets in Crypto-Assets Regulation (MiCA) closes for good, and companies that have not secured authorisation must either stop serving European customers or wind down altogether.

MiCA is the EU’s first comprehensive law for the crypto industry, bringing exchanges, brokers and digital wallet providers under the kind of formal oversight that has long applied to banks and other financial firms.

It replaces a fragmented mix of national rules with a single rulebook spanning all 27 member states: a company licensed in one EU country earns a “passport” to operate across the bloc, but in return it must meet standards on how much capital it holds, how it is run, how it safeguards customers’ funds and how it prevents money laundering.

“What emerges is a genuine single market replacing the old patchwork of 27 national regimes,” Yamal Kalaf, co-founder of MiCAR Whitepapers Europe, which advises crypto businesses on MiCA authorisation, told Euronews.

Since the core rules took effect at the end of 2024, existing operators have been allowed to keep operating under older national registrations, but that concession was temporary.

Crypto firms need European licences but many are behind

The scale of the looming shake-out is striking.

According to the European Securities and Markets Authority (ESMA), which confirmed in April that there would be no extension, only around 210 firms had obtained full authorisation by May, out of more than 1,200 that previously held national crypto registrations across the EU.

That points to a conversion rate of well under a fifth, leaving the vast majority of the old market without a licence as the cut-off arrives in a few days.

Speaking to Euronews, Roshan Dharia, CEO of distressed-investment firm Echo Base, explained that “the low conversion rate suggests that a meaningful portion of the market has concluded that obtaining and maintaining a MiCA licence is not economically viable within its current operating model.”

National regulators have warned that firms operating beyond the deadline without the new licence face enforcement action. France’s markets watchdog has also cautioned that continuing without authorisation could expose companies to criminal prosecution.

ESMA has told unlicensed providers to prepare orderly wind-downs, including transferring customer assets to authorised platforms or self-custody wallets, and to notify clients in advance so they can move funds safely.

“What we will see after 1 July is a smaller, more institutional market with real passporting. That is not a market in retreat. That is a market growing up,” Miguel Zapatero, Head Counsel at Crossmint, told Euronews.

Crossmint is a crypto infrastructure provider whose licensed rails let developers build wallets, custody and payment products.

A market reshaped around licensed rails

Plenty of familiar names have already cleared the bar.

Coinbase has been authorised in Ireland and Kraken in Ireland and Luxembourg. At the same time, the banking app Revolut secured its licence from Cyprus’s regulator late last year, allowing it to offer crypto services across the EU.

For these firms, the new rules promise a reward as unlicensed rivals retreat, the survivors stand to absorb their departing customers.

“MiCA is a genuine regulatory identity shift, not a registration exercise,” Gal Arad Cohen, partner at law firm S. Horowitz & Co, told Euronews.

The most prominent casualty so far may be Binance, the world’s largest crypto exchange.

According to Reuters, which cited two people familiar with the matter, Binance is set to lose permission to serve EU clients because its licence application to Greece’s market regulator, the Hellenic Capital Market Commission, is poised to be rejected.

Without approval in any member state, the exchange would be unable to operate across the bloc from July onwards.

Speaking to Euronews, Patrick Mollard, CEO at Fipto, a blockchain-based payments company for businesses, referred to the Binance case by stating that “scale earns you no shortcut to a licence, and that is precisely the point.”

Binance has pushed back, saying it has worked constructively with regulators for 18 months and believes its application met MiCA’s requirements. The company added that it understood the Greek authority had completed its review and found the filing compliant.

The company has promised a further update before 30 June.

The episode has also reputedly taken on a political dimension.

French crypto publication The Big Whale reported, citing unnamed sources, that ECB President Christine Lagarde had opposed Binance’s bid for a Greek MiCA licence.

Euronews could not independently verify the report, and neither the ECB nor the Greek government has publicly commented on the allegations.

The Big Whale also reported that Binance is exploring a potential MiCA application in France after the setback in Greece, a claim that neither Binance nor French regulators have publicly confirmed.

Binance did not immediately respond to a request for comment from Euronews.

A shake-out for smaller crypto firms

Beyond the biggest names, the deadline is expected to push smaller crypto apps and brokers towards licensed custody providers. Rather than building their own MiCA-compliant systems, many are likely to rely on authorised firms to hold customer assets.

“We will see consolidation and transfer of clients as the deadline will not be met by all currently operating entries,” Floortje Nagelkerke, partner at law firm Norton Rose Fulbright, explained to Euronews.

The result, analysts suggest, will be a smaller, more concentrated European market, with fewer players, higher barriers to entry and a clear advantage for those holding a licence, but stronger consumer protections.

“People who hold crypto in the EU after 1 July will, on balance, hold it on safer rails,” Miguel Zapatero, Head Counsel at Crossmint, concluded.

May 11 (UPI) — British Prime Minister Keir Starmer pledged a bigger, bolder, more optimistic direction for Britain, with a much closer relationship with the European Union at its heart, as he fought to hold onto his job on Monday following a disastrous showing by his party in elections.

In a speech in London, Starmer acknowledged making mistakes, but said he would prove wrong those who doubt his ability to deliver solutions to the country’s problems, saying Labour needed to bring “a bigger response” than they had believed was necessary when they came into office.

“Incremental change won’t cut it on growth, defense, Europe, energy. We need a bigger response than we anticipated in 2024 because these are not ordinary times, and this is a political challenge, just as much as it’s a party challenge,” he said.

While insisting his government had got “the big political choices right” on issues such as not getting involved in the Iran war and “investment in public services,” Starmer promised to do much more on apprenticeships, technical excellence colleges and special educational needs to guarantee a job, training or internship to every young unemployed Briton.

He also promised the most significant overhaul of ties with the EU since Britain officially left the bloc in 2021.

“This Labour government will be defined by rebuilding our relationship with Europe, by having Britain at the heart of Europe, standing shoulder to shoulder with the countries that most share our interests, our values and our enemies. That is the right choice for Britain,” he said.

Taking questions from reporters afterward, he kicked the question of rejoining the EU single market or customs union down the road to beyond the next election — but did not rule either out.

Starmer vowed he would see off any attempt to topple him after Nigel Farage’s Reform UK made historic gains in English council elections and parliamentary elections in Wales and Scotland, at Labour’s expense, and warned those who wanted him out that it could clear the way for Farage.

“We are not just facing dangerous times, but dangerous opponents, very dangerous opponents,” he said, saying Labour was the only thing preventing the country from going down a very dark path.”

“This is nothing less than a battle for the soul of our nation, and I want to be crystal clear about how we will win, because we cannot win as a weaker version of Reform or the Greens. We can only win as a stronger version of Labour, a mainstream party of power, not protest,” Starmer said.

Starmer had faced possible internal party challenges from senior party figures seeking to replace him and wider calls to set a timetable for his departure after the party’s disastrous performance.

However, the BBC said Starmer’s speech appeared to have defused the immediate threat to Starmer of a contest for the leadership of the party — and therefore the prime ministership — with backbench MP Catherine West criticizing his speech as “too little, too late” but backing down from her threat to force a leadership election today.

However, she said she still wanted him gone by September.

“The results last Thursday show that the PM has failed to inspire hope. What is best for the party and country now is for an orderly transition. I am hereby giving notice to No. 10 that I am collecting names of Labour MPs to call on the Prime Minister to set a timetable for the election of a new leader in September,” she wrote in a post on X.

West said she had the backing of 10 of the 81 MPs required under party rules to formally kick off a challenge by an MP. If and once a nomination receives sufficient backing, that would likely trigger a full-blown race for the leadership.

Assuming he does not resign, as sitting prime minister, Starmer is an automatic candidate in any leadership election if he so wishes. Former Labour Party leader Jeremy Corbyn fought and won a contest to remove him in 2016, consolidating his authority, although he was leader of the opposition only and not prime minister.

While Labour leaders have resigned under pressure from the party, the cabinet or the public, none has been removed in a formal leadership challenge in post-war Britain.

West is not seeking to replace Starmer herself.

A Labour MP said: “Not sure voters in Wigan, Wandsworth, Salford or Sunderland voted Reform because they thought we needed more advisers from a different era of Labour politics. I think this shows that Keir doesn’t even understand the problem, never mind the solution.”

After the game, Murphy had hinted at frustration about comparisons to other Ulster teams who had come up short in previous semi-finals.

He went as far to say that “this team hasn’t been in a semi-final before”.

And, in truth, he was right.

Of the starting team that were pipped by the Stormers in a dramatic United Rugby Championship semi-finals in 2022, only five were in action on Saturday.

Along with Timoney, Iain Henderson, Tom O’Toole, Stuart McCloskey and Ethan McIlroy were the sole survivors from the starting team that day.

Even on the bench that day in Cape Town, only Nathan Doak and Eric O’Sullivan featured against Exeter.

“It’s such a different team since then,” Timoney said.

“There’s been a lot of change now to the group, so it’s about this current journey.

“Sometimes it’s good for individuals, and for me and the likes, to have those lessons built up over a number of years.

“But the beauty sometimes of newer lads who don’t have those experiences, they don’t have those scars and it doesn’t even factor into their minds.”

The election victory of Hungary’s Tisza party on April 12 marks the end of the 16 year rule of Viktor Orbán, a figure who has long defined Hungary’s contentious relationship with the European Union. His tenure reshaped Hungary’s domestic institutions and repeatedly placed the country at odds with EU norms, laws, and political consensus.

The incoming leadership under Péter Magyar now inherits not only a domestic mandate for change but also the complex task of rebuilding trust with the EU after years of institutional confrontation.

A fractured relationship with Brussels

Under Orbán, Hungary frequently clashed with EU institutions over rule of law, judicial independence, media freedom, and migration policy. One of the most controversial measures was the lowering of the retirement age for judges and prosecutors, which critics argued enabled political reshaping of the judiciary.

Tensions escalated further after 2022, when Hungary’s stance on sanctions against Russia and support for Ukraine created repeated deadlocks within EU decision making processes.

Financial pressure also became a key tool of EU leverage. The European Commission suspended billions of euros in funding to Hungary, citing concerns over corruption and democratic backsliding, deepening the political divide.

Allegations and escalating mistrust

Relations deteriorated further following leaked reports alleging that senior Hungarian officials coordinated with Russian counterparts during sensitive EU discussions. These claims intensified accusations within parts of the EU that Hungary had undermined collective decision making during a period of heightened geopolitical tension.

While Budapest has rejected many of these allegations, they contributed to a climate of mistrust that severely weakened Hungary’s position within the bloc.

A new government with a reform mandate

The Tisza party’s victory signals a clear domestic demand for change, particularly around governance and corruption. The new administration has strong incentives to restore relations with the EU, not least because of the approximately 17 billion euros in suspended funding that could be unlocked if conditions are met.

EU leaders, however, have made it clear that financial normalization will depend on compliance with a wide set of governance and legal reforms. These include anti corruption measures, judicial independence safeguards, and adjustments to policies affecting migration and minority rights.

Structural constraints on reform

Despite political momentum for rapprochement, significant obstacles remain. Hungarian society remains more socially conservative and more sceptical of the EU than many of its Western counterparts. This limits the political space for rapid liberal reforms, particularly in sensitive areas such as LGBTQ+ rights and asylum policy.

Economic pressures further complicate the situation. The new government will inherit fiscal strain linked to years of disputed EU funding and broader geopolitical uncertainty, including the economic effects of the ongoing war involving Iran, which has disrupted global energy markets and increased financial volatility.

Ukraine and the Russia question

One of the most sensitive areas in Hungary’s future EU relationship will be its position on Ukraine. While Péter Magyar has signaled a willingness to improve relations with Ukraine and align more closely with NATO and EU policy, key ambiguities remain.

His stated openness to continuing Russian energy imports for the foreseeable future, combined with proposals for a referendum on Ukrainian EU membership, suggests that strategic continuity with aspects of the previous government may persist.

Given public scepticism toward Ukraine within Hungary, any referendum could significantly complicate EU enlargement plans.

Analysis

The end of Orbán’s long tenure represents a clear political inflection point in EU Hungary relations. It removes a persistent source of institutional confrontation and opens the possibility of renewed cooperation with Brussels.

However, the assumption that relations will automatically normalize is overly optimistic. The structural sources of tension between Hungary and the EU extend beyond one leader. They include divergent political cultures, competing interpretations of sovereignty, and deep disagreements over migration, rule of law, and foreign policy alignment.

The new government’s dependence on EU funds gives Brussels significant leverage, but also creates domestic political risk if reforms are perceived as externally imposed. This creates a delicate balancing act between compliance and legitimacy.

On foreign policy, Hungary’s position on Russia and Ukraine will remain the most consequential test. Even partial continuity with previous policies could reintroduce friction at a time when EU unity is under pressure from multiple geopolitical crises.

Ultimately, Orbán’s departure may mark the end of one chapter, but it does not resolve the underlying tensions that have defined Hungary’s relationship with the European project. The reset, while possible, will be gradual, conditional, and politically contested.

With information from Reuters.