On July 1, the Markets in Crypto-Assets (MiCA) regulation will take effect in the European Union, prohibiting unlicensed crypto services from operating within EU member states. More than 10 million cryptocurrency users will be forced to find a new platform, said Alex Fazel, director of partnerships at Swiss crypto app developer Swissborg, in an interview with CoinDesk, according to RBC.
The European Securities and Markets Authority (European Securities and Markets Authority, ESMA) has warned that crypto-asset service providers without a MiCA license must cease operations after July 1 and help clients transition to authorized providers or use personal crypto wallets.
It was estimated that as of 2024, there were more than 3,000 crypto platforms (virtual asset service providers, VASPs) registered in Europe. OKX Europe estimates that up to 80% of them will be unable to continue operating, and this will immediately affect customers whose exchanges are suspending services to Europeans, Fazel believes.
Last week, Coinbase and OKX offered bonuses for account deposits and fund transfers to attract users whose platforms are exiting the EU. Exchanges have begun a race for European customers by offering discounts, Fazel noted. However, he said, choosing a new crypto platform is not easy—what matters is not so much the financial aspect as the platform’s reputation in the local market, its policies, security measures, features, and the community that uses it.
Binance, the world’s largest crypto exchange, has still been unable to obtain an EU license. Its founder, Changpeng Zhao, stated on Monday that the application fully met the requirements and was close to approval, but that “political forces” prevented this.
Earlier, The Big Whale linked the denial of Binance’s license to personal intervention by ECB President Christine Lagarde due to her stance on stablecoins and their impact on the digital euro project. This information has not been officially confirmed. Last week, Binance withdrew its application filed in Greece and warned European users that it would be discontinuing service.
Bybit announced that it will begin gradually restricting access to the Bybit Global platform for users from countries in the European Economic Area, including Germany, France, Italy, Spain, Poland, and other EU member states. A separate MiCA-licensed platform, Bybit EU, is available for users in the European Union; a separate account is required to use it.
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