The Markets in Crypto-Assets regulation has reached its final transitional deadline for European crypto firms, meaning any entity offering crypto services in the EU without a CASP license now faces potential shutdown or enforcement action. Regulators across member states are expected to escalate enforcement, and firms that relied on transitional arrangements are running out of runway. Industry participants describe the risk for smaller and mid-size unlicensed operators as existential.
Armada's crypto repo desk sources collateral and counterparties from market makers, family offices, and institutional holders, some of which may have European operations or domiciles. A counterparty losing its MiCA license could face operational restrictions that impair their ability to deliver or receive collateral, perform margin calls, or remain solvent. Armada should verify MiCA status for all EU-adjacent crypto counterparties and ensure any affected relationships are escalated before exposure accumulates.