ESMA issues statements on MiCAR transitional measures and grandfathering periods for CASPs
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Under Article 143(3) of MiCAR, CASPs active before 30 December 2024, may continue providing services until 1 July 2026, or until they receive or are denied MiCAR authorisation, whichever comes first. However, individual Member States may reduce or waive this transitional period, depending on their existing national frameworks.
Grandfathering periods by jurisdiction
The duration of the transitional regime varies, with some Member States opting for shorter periods to enhance market stability and investor protection. Below is a summary of the grandfathering periods:
Member state | Grandfathering period | Member state | Grandfathering period |
| Belgium | TBA | Lithuania | 5 months |
| Bulgaria | 12 months | Luxembourg | 18 months |
| Czechia | 18 months | Hungary | 6 months |
| Denmark | 18 months | Malta | 18 months |
| Germany | TBA | Netherlands | 6 months |
| Estonia | 18 months | Austria | 12 months |
| Ireland | 12 months | Poland | 6 months |
| Greece | 12 months | Portugal | TBA |
| Spain | 12 months | Romania | 18 months |
| France | 18 months | Slovenia | 6 months |
| Croatia | 18 months | Slovakia | 12 months |
| Italy | 12 months | Finland | 6 months |
| Cyprus | 18 months | Sweden | 9 months |
| Latvia | 6 months |
European Economic Area (EEA) countries
EEA country | Grandfathering period |
| Iceland | 18 months |
| Liechtenstein | TBA |
| Norway | 12 months |
Note: Some periods reflect current expectations and may not yet be formalised in national law. Specific requirements also apply, such as early application deadlines to benefit from grandfathering.
Compliance challenges and recommendations
The divergence in timelines in each Member State create complex compliance requirements for CASPs operating across multiple jurisdictions. For example, if a CASP secures MiCAR authorisation in a Member State with a longer transitional period but serves clients in a state with a shorter one, a compliance gap could arise. This scenario may disrupt services and impact market participants.
To address these challenges, ESMA advises CASPs to:
- Apply for MiCAR authorisation as early as possible
- Engage proactively with National Competent Authorities (NCAs) in each jurisdiction
- Implement robust strategies to avoid service disruptions and ensure compliance
NCAs should coordinate closely across borders to streamline authorisation processes and prevent market disruptions. Early and continuous dialogue between home and host Member States is essential to safeguarding market integrity and client interests.
MiCAR’s transitional measures and country-specific grandfathering periods pose significant operational challenges for CASPs. Timely applications, strategic planning and regulatory engagement are crucial to ensuring compliance and uninterrupted service.
ESMA’s statement can be found here and the official list of grandfathering periods as decided by Member States can be accessed here.
If you are unsure whether MiCAR may apply to you, you can use our MiCA Assessment Tool to obtain a free preliminary assessment here.
