OKX Europe CEO Erald Ghoos said about 80% of crypto exchanges will not survive Europe’s Markets in Crypto-Assets regulation, with the European Securities and Markets Authority requiring unlicensed firms to stop serving EU clients once national transition periods expire on July 1.
MiCA, which the European Parliament approved in April 2023, established one of the world's first comprehensive regulatory frameworks for crypto assets. The regime requires crypto-asset service providers to obtain authorization from a national competent authority in an EU member state, allowing them to passport services across the bloc and the broader European Economic Area.
While MiCA's crypto service provider rules took effect on Dec. 30, 2024, member states were allowed to grant existing firms transitional periods of up to 18 months. That grace period ends on July 1, after which firms without MiCA authorization can no longer legally offer crypto services in the EU. The framework covers transparency, disclosure, authorization and supervision, while also imposing reserve requirements on stablecoin issuers and consumer protection obligations on trading platforms.
Market not prepared for July 1 deadline
In an interview with The Block, Ghoos said the market is not fully prepared for the July 1 deadline. He said 60% of European crypto users are on platforms with no MiCA authorization, and many of those platforms have "no path to getting one."
