The countdown has reached a critical stage. As of this article’s publication, only 180 days remain for Digital Asset Service Providers (DASPs) registered in France to obtain their authorisation as a Crypto-asset service provider (CASP). After 30 June 2026, the hammer of “illegal practice” will fall, with no further transitional period or grace period.

It is now imperative for every DASP preparing its transition to MiCA to integrate and formalise the possibility of an orderly wind-down of its activities. In its communication of 4 December 2025, ESMA reminded stakeholders that the expiration of the deadline will not result in any relaxation of the requirements from national competent authorities (NCAs), including the Autorité des marchés financiers (AMF). On the contrary, ESMA expects NCAs to “handle ‘last-minute’ MiCA authorisation applications with enhanced caution” and to maintain a consistent level of assessment.

Anticipating a DASP’s cessation of activity

A DASP must realistically anticipate a scenario in which it would be forced to cease its activities at the deadline, for two reasons:

• First, the application file for CASP authorisation must mandatory include an orderly wind-down plan compliant with MiCA and financial best practices;

• Second, this plan must be activated in the event of an authorisation refusal or late submission.

The cessation of activity, which includes the return of assets to clients, must be implemented in an orderly manner and without prejudice to the clientele. At the European level, ESMA requires DASPs that have not yet obtained MiCA authorisation to implement their wind-down plans for services provided in Member States where the transitional period has ended, and to have an operational plan ready for other jurisdictions.

The objective is to allow for a cessation of activity without causing undue economic harm to clients. This dual requirement, MiCA compliance and wind-down planning, demands a strategic positioning from every DASP, involving both careful risk assessment and operational readiness.

A demanding and risky procedure

An orderly wind-down is not a mere company closure. It is a demanding and lengthy process (lasting several months at a minimum), involving major stakes and a real risk of sanctions for non-compliance. The goal is to ensure that, even during closure, client interests and regulatory standards are respected.

The obligations in case of cessation

As soon as the management body of the DASP has triggered the wind-down plan, the provider must:

• Notify the AMF: Ideally one month before the procedure begins.

• Halt onboarding: Stop the acquisition of new clients.

• Inform clients: Provide information that is fair, clear, and not misleading under MiCA transparency obligations.

• Issue statements: Send a statement of position to each client, providing a reasonable period to cease using the service and repatriate their crypto-assets.

• Transfer unclaimed assets: Move unclaimed crypto-assets to another authorised CASP. These operations must comply with MiCA requirements regarding custody and administration , cybersecurity, and the protection of personal data.

• Data retention: Arrange for records to be kept for the minimum duration of five years provided by MiCA and AML/CFT regulations.

This procedure is highly complex, particularly in emergencies or cases of limited resources. These risks are especially critical for providers offering custody and administration of crypto-assets on behalf of clients.

Focus: managing dormant client crypto-asset

Upon wind down, the DASP will face the challenge of dormant clients (those who do not respond or whose contact details are obsolete). Unlike the banking sector, there is not yet a specific regulatory framework for managing inactive crypto-asset accounts. Under the framework applicable to DASPs and CASPs, the only secure solution is to transfer dormant portfolios to another authorised CASP.

As highlighted by ADAN in a November 2024 position paper, several avenues are being explored:

• Using the Caisse des Dépôts et Consignations (CDC), which appears to be the most sustainable solution.

• Defining a financial threshold (e.g., €20 per asset line or €50 total) below which funds would be considered abandoned and transferred to the DASP to cover wind-down costs. This must be explicitly stated in the contract and notified to clients; it cannot apply to accounts where express consent was not obtained.

However, these positions remain at the discussion stage with public authorities.

The risk of oversight and sanctions

ESMA reminds competent authorities of their essential role in:

• Processing “last-minute” applications with increased caution.

• Applying enforcement measures against the unauthorised provision of services.

Consequently, providing services without CASP authorisation after 1 July 2026 may be classified as:

• A disciplinary breach: Justifying formal notices, audits, fines , or inclusion in the register of non-compliant entities.

• A criminal offence: For the illegal provision of services on the French market.

• A management failure: Impacting the good reputeof the management body, potentially barring them from the financial sector in the future.

• Civil liability: Leading to automatic fault in client litigation and associated damages.

How to manage your DASP activity’s end?

ESMA has sent an unequivocal signal: having an orderly wind-down plan is no longer an option, but an immediate strategic necessity. Any delay in formalising this plan increases the risk of illegal practice. Conversely, establishing a robust plan allows for risk analysis and ensures a transition or exit that aligns with best practices.

Total or partial cessation, or transition to MiCA? ORWL_ supports you in managing your DASP activity’s end and secures the structuring of your new project to obtain CASP authorisation (contact us).