MiCA Deadline Could Push 10 Million EU Crypto Users to New Platforms
A July 1 deadline under the EU’s MiCA framework may force more than 10 million crypto users to find new service providers as unlicensed platforms halt or restrict operations. Regulators have instructed affected firms to support transfers to authorized providers or self-hosted wallets.
What happened?
A July 1 deadline under the EU’s MiCA framework may force more than 10 million crypto users to find new service providers as unlicensed platforms halt or restrict operations. Regulators have instructed affected firms to support transfers to authorized providers or self-hosted wallets.
Why it matters
A key July 1 deadline under the European Union’s Markets in Crypto-Assets regulation could leave more than 10 million users searching for a new platform, according to Alex Fazel, chief partnership officer at SwissBorg. Dozens of exchanges without MiCA authorization are expected to halt or restrict services.
A key July 1 deadline under the European Union’s Markets in Crypto-Assets regulation could leave more than 10 million users searching for a new platform, according to Alex Fazel, chief partnership officer at SwissBorg. Dozens of exchanges without MiCA authorization are expected to halt or restrict services.
The change matters because customers may need to move assets or accounts with limited time to assess alternatives. The European Securities and Markets Authority has told unlicensed crypto-asset service providers to wind down and help customers transfer to authorized firms or self-hosted wallets.
Europe had more than 3,000 registered virtual asset service providers under the pre-MiCA classification in 2024. OKX Europe CEO Erald Ghoos estimated that as many as 80% may not continue operating after the deadline.
Several exchanges, including Binance, have announced changes to their European services, while other companies are pursuing authorization or modifying products. Coinbase and OKX have also offered deposit and transfer incentives as they seek customers affected by the market shift.
MiCA enforcement is also tightening around stablecoins. The European Banking Authority has proposed allowing fines of up to 12.5% of annual turnover for significant issuers that breach the rules, with consultation on the methodology running until Sept. 28.