Per Woofun AI, the European Securities and Markets Authority has issued a directive requiring unlicensed crypto asset service providers to execute an orderly cessation of activities within the European Union. This mandate aligns with the conclusion of the Markets in Crypto-Assets regulation transition period on July 1, 2026.

Providers must immediately stop accepting new EU-based clients and discontinue core services, including the sale and transfer of digital assets. This enforcement action underscores the regulatory shift toward strict licensing compliance across the region.