75% of CEXs need to exit, European crypto licenses have become a life-or-death line, are small players panicking now?

Crypto World News reports that the EU's MICA transition period will end on July 1, 2026, and entities that have not yet obtained approval, including crypto exchanges, brokers, and wallets. The European Securities and Markets Authority (ESMA) states that entities without a MICA license will be in violation of EU law and must cease operations. It is estimated that about 75% of service providers before the MICA transition period will lose their registration eligibility. According to Hogan Lovells, there were over 3,000 virtual asset service providers in Europe in 2024, but by May 2026, only 194 had obtained authorization. The French Financial Markets Authority (AMF) warns that only authorized crypto asset services are permitted, and unapproved providers face up to two years in prison and a €30k fine.