Ahead of July 1, EU crypto exchanges without MiCA licenses face winding down, leaving over 10 million users hunting for new platforms, Swissborg's Fazel says.
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More than 10 million European crypto users could be stuck searching for a new exchange ahead of July 1, the date when the EU's Markets in Crypto-Assets (MiCA) rules fully kick in. That warning came from Alex Fazel, chief partnership officer at Swissborg, in an interview with CoinDesk.
The European Securities and Markets Authority has told crypto-asset service providers operating without a MiCA license after the deadline to wind down and help customers move their assets to authorised platforms or self-hosted wallets. The message is straightforward: no license, no service.
Europe had roughly 3,000 registered virtual asset service providers before MiCA. Erald Ghoos, CEO of OKX Europe, told CoinDesk that as many as 80% of those firms will not continue past the deadline. That leaves a wide gap between the number of users and the number of compliant platforms still operating.
The European Banking Authority, which directly supervises significant stablecoin issuers under MiCA, added another layer on Friday. The EBA proposed a framework that would allow fines of up to 12.5% of annual turnover for major issuers that breach the regulation. The consultation period runs until Sept. 28, after which the methodology becomes final.
Several exchanges have already adjusted their European services. Binance announced changes ahead of the deadline. Coinbase and OKX last week launched deposit and transfer incentives to attract users displaced by scaling-back platforms.
Fazel compared the situation to a tenant being evicted without notice. "When a platform pulls back, users unfortunately absorb the shock, like a tenant being evicted by its landlord with no notice," he said. "People shouldn't keep hunting for a new home. They should pick one built to stay."
He warned against choosing an exchange purely for short-term bonuses. "Every exchange is piling into the same rat race of bigger bonuses, louder cheques," Fazel said. "Money does not earn trust. A local track record does."
For users still holding assets on unlicensed platforms, the clock is shorter than it looks. July 1 is the cutoff for service, not the day to start the move.
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