The end of the “wild west” of crypto in Bulgaria is coming on July 1

The era of unregulated trading in crypto-assets in Bulgaria and the European Union is entering its final phase. The transition period under the MiCA (Markets in Crypto-Assets) Regulation expires on July 1, 2026, and the rules will become uncompromising. This is emphasized by the European Securities and Markets Authority (ESMA) and the Financial Supervision Commission.

After this date, any company providing crypto-asset services in the EU without a valid license will be in violation of the law and must immediately cease operations.

The Crypto-Asset Markets Act, which regulates trading and services related to cryptocurrencies in the country, was adopted in June 2025. The first of its kind in the crypto industry, it was enacted in response to the European Markets in Crypto-Assets Regulation (MiCA) and Bulgaria’s obligation as an EU member to transpose it into national law.

What happens after July 1?

After the transition period expires, any unlicensed company that continues to offer crypto services to EU citizens will be in direct violation of the law.

Companies that have not obtained a license by July 1 are required to: On the other hand, already licensed companies must actively manage the migration of clients from the old regime to the new one. This process will also include strict anti-money laundering and counter-terrorist financing checks.

• Implement a plan for an orderly exit from the market, ensuring the protection of client assets;
• Provide the option to transfer funds to licensed operators or personal portfolios;
• Notify their customers in advance of the cessation of operations.

An important clarification in the press release is that companies established outside the territory of the Union are not permitted to target European investors. An exception is made only in cases of so-called “client-initiated services,” the FSC specifies.

The restrictions also affect business relationships – licensed companies are no longer permitted to delegate the custody of assets to unlicensed custodians.

Expert Advice: How to Protect Your Assets?

• Check Your Provider

Before transferring money or investing in a crypto company, check whether it is registered in the Interim Register under MiCA at ESMA. For FSC-licensed Bulgarian companies, you can check here.

• Think locally, not globally

MiCA protections apply only to legal entities licensed in the EU. However, they may operate under a single brand in different countries and even continents. Carefully review the contract you are about to sign to ensure you know exactly which company will be providing your services.

• Take action if necessary

If your provider is not licensed, act immediately – transfer your crypto assets to a licensed provider or to a self-custodial wallet – or consider closing your positions. Staying with an unlicensed crypto-asset service provider means weaker legal protection and a greater risk of losing your assets.

Translated with DeepL.