Can a Crypto Exchange Freeze My Funds Under MiCA?

When an exchange can hold your funds

Four sets of EU rules allow or require an exchange to stop a transaction. None of them is a general right to freeze an account at will.

Legal grounds on which an EU crypto exchange can hold a transaction
Reason	Legal basis	What the exchange can do
Missing transfer information	Regulation (EU) 2023/1113, Articles 14(8), 16 and 17	The receiving exchange checks sender and recipient information before it credits a transfer. If information is missing, it rejects or returns the transfer, or asks for the information first. The sending exchange may not execute a transfer until it complies.
Customer due diligence	Directive (EU) 2015/849, Article 14(4)	If identity checks cannot be completed, the exchange must not carry out the transaction and must end the business relationship.
Suspicion of money laundering	Directive (EU) 2015/849, Articles 32(7), 35 and 39	The exchange must not carry out a suspicious transaction until it has reported it. The financial intelligence unit can suspend the transaction. The exchange may not tell you about the report.
Sanctions	EU restrictive measures, for example Council Regulation (EU) No 269/2014, Article 2	Funds and economic resources of listed persons must be frozen, and none may be made available to them.
Order of an authority	MiCA, Article 94(1)	A national authority can suspend crypto-asset services for up to 30 consecutive working days, prohibit them, or order an unauthorised firm to stop at once.

For a transfer of more than €1,000 between an exchange and a wallet you control, the exchange must also assess whether you own or control that address (Articles 14(5) and 16(2) of Regulation (EU) 2023/1113). A request for proof of ownership is a normal part of that check.

What a licensed exchange owes you

Fair treatment. The exchange must act honestly, fairly and professionally in the best interests of its clients (Article 66(1)).
Return of assets. A custodian must have procedures to return crypto-assets or the means of access as soon as possible (Article 75(6)).
Segregation. Assets in custody are legally segregated from the exchange’s estate, so its creditors have no recourse to them (Article 75(7)).
Complaints. The exchange must handle complaints promptly, fairly and free of charge, and publish its procedure (Article 71).

If a held transfer is not resolved, file a complaint under the exchange’s published procedure first. Keep a copy of every message. The national authority of the exchange’s home state supervises its compliance with MiCA.

If your exchange has no MiCA licence

In a public statement of 23 June 2026, ESMA said that unauthorised providers must stop onboarding new EU clients. They must limit their services to selling or transferring crypto-assets, reallocating assets or closing positions. Custody may continue only for the period strictly necessary to complete an orderly exit. Their messages to clients should include a deadline after which any residual positions close automatically.

ESMA also warned that clients of unauthorised providers do not benefit from MiCA safeguards, including protections for client assets. It invited them to move their crypto-assets to an authorised provider or to a self-hosted wallet. Check your platform with our guide on how to check a MiCA licence.

Will my bank block transfers?

No EU rule requires a bank to block payments to an unlicensed crypto exchange. MiCA contains no such duty for banks or payment providers. Article 79 of the Payment Services Directive (EU) 2015/2366 lets a payment provider refuse a payment order. The provider must then notify you of the refusal and, if possible, the reasons, unless other law prohibits it.

Banks apply their own risk policies. The EBA guidelines on money laundering risk factors say that a bank may face increased risk when it deals with a crypto-asset service provider that is not authorised under MiCA. We found no published policy of an EU bank that blocks customer payments to unlicensed exchanges.

How to avoid a held transfer

Use an exchange with a current MiCA register entry for your country.
Complete the identity checks before you deposit or withdraw.
Give the full name of the recipient when the exchange asks for transfer details.
Be ready to prove that you control your own wallet for transfers above €1,000.
Keep records of where your funds came from, such as bank statements and trade history.

Common questions

Can a MiCA-licensed exchange freeze my account without a reason?

A licensed exchange must act honestly, fairly and professionally in the best interests of its clients (MiCA Article 66). It can still hold or stop a transfer under anti-money laundering, transfer-information or sanctions rules. Where it has reported a suspicion, the AML Directive forbids it from telling you about the report.

How long can an exchange hold a crypto transfer?

No single time limit applies. Under Regulation (EU) 2023/1113 the receiving exchange can ask for missing sender or recipient information before it credits a transfer, or it can reject or return the transfer. The time depends on how quickly the missing information arrives.

Will my bank block payments to an unlicensed exchange?

No EU rule requires a bank to block such payments. A payment provider can refuse a payment order under the Payment Services Directive and must normally tell you. Banks set their own risk policies, and several UK banks limit or block payments to crypto exchanges. UK rules are separate from MiCA.

What happens to my coins if my exchange has no MiCA licence?

ESMA expects unauthorised providers to stop onboarding, to limit services to selling or moving assets and to set a deadline after which residual positions close automatically. ESMA also says that their clients do not benefit from MiCA safeguards for client assets.

Sources

Reviewed 14 October 2026. The page gives general information and does not provide legal advice. Contact your provider or a lawyer about a specific held transfer.