MiCA Transition Ends, License Shortage Sparks Europe's Largest Exchange Exodus

Original by Odaily (@OdailyChina)

Author: jk

On July 1, 2026, the transition grace period for the European Union's Markets in Crypto-Assets Regulation (MiCA) officially ended.

From this date onward, any institution providing crypto-asset services to users within the EU must, without exception, hold a formal MiCA authorization license. Unlicensed operators are prohibited from accepting new deposits or conducting new business. The French regulator AMF has explicitly warned that illegal operations can result in up to two years imprisonment and a fine of €30,000, with regulators also retaining the enforcement power to publish blacklists and apply for website blocking.

As of May 2026, approximately 194 crypto firms within the EU have obtained formal MiCA authorization, whereas the number of crypto service providers previously registered or operating under various national regimes across Europe is estimated to be between 1,100 and over 3,000. Legal firm Hogan Lovells estimates that around 75% of legacy platforms will lose their legal operating status after the grace period ends. Exchanges that have not obtained authorization and thus cannot be used include Binance, MEXC, and others.

What kind of regulatory test does this pose for exchanges? What do the details of MiCA say? Which exchanges will no longer be accessible? What actions do users need to take? Odaily will interpret these one by one.

What is MiCA?

MiCA is the first comprehensive regulatory framework for the crypto-asset market in EU history, officially taking effect in 2023. It covers all 27 EU member states, plus three EEA member states: Norway, Iceland, and Liechtenstein.

Before MiCA was implemented, the regulation of crypto firms across Europe was highly fragmented. The same exchange needed to register with the financial regulator in Germany for Germany, obtain a PSAN license in France for France, with thresholds and enforcement rigor varying significantly from country to country. MiCA's goal is precisely to replace this fragmentation with a unified set of rules. This is also typical of the EU's policy-making approach.

As a large and comprehensive regulatory framework, MiCA has a wide scope. Any institution providing crypto-asset-related services to clients within the EU, collectively referred to as "Crypto-Asset Service Providers" (CASPs), must apply for authorization from the national competent authority and clearly specify the categories of services offered.

MiCA subdivides CASP services into ten major categories, including: operating a trading platform for order matching, custody and administration of crypto-assets, exchange of crypto-assets for funds or other crypto-assets, execution of orders on behalf of clients, portfolio management, advisory services, etc. One MiCA license only covers the categories specified in the application. An exchange wanting to offer matching, custody, and transfer simultaneously needs to apply for authorization covering multiple services.

MiCA also establishes a specific sub-framework for stablecoins. Stablecoins pegged to fiat currency and stablecoins pegged to a basket of assets must meet issuance authorization and reserve requirements respectively. Those exceeding a certain issuance threshold face stricter regulatory constraints.

Furthermore, MiCA introduces a "Passporting" mechanism: just as a person holding an EU passport can live, work, and reside in any member state, a company that obtains a MiCA license in any one EU member state can extend its services to other member states through a notification process, without needing to reapply country by country.

Different Transition Periods?

MiCA's rules for stablecoins took effect first in June 2024, while the CASP-related provisions came into force at the end of December 2024. To accommodate crypto firms already registered or operating under national regimes, MiCA provided a transition grace period. Each member state could determine the length of its own grace period, capped at 18 months, meaning the latest possible end date was July 1, 2026.

The core logic of the grace period was to give platforms already operating under national regimes time to complete the MiCA application and approval process, allowing them to continue operations during this period.

Different countries handled the grace period differently. The Netherlands was the first to end its grace period on July 1, 2025, forcing some local exchanges to obtain licenses prematurely. Germany shortened its grace period to the end of December 2025, using this as leverage to pressure applicants and accelerate the approval process. When Lithuania's transition period ended, over 240 crypto firms registered locally closed down. By June 2026, 20 out of the 27 EU member states had ended their respective national transition periods before the overall deadline of July 1.

On April 17, 2026, the European Securities and Markets Authority (ESMA) issued an official statement confirming July 1 as the final deadline, with no further extensions possible. For CASPs that remained unauthorized by the deadline, ESMA required an "orderly wind-down": stop accepting new deposits, cease new business activities, transfer existing user assets to licensed platforms, or assist users in moving assets to self-custodial wallets.

According to a report by Crypto News citing institutional data, as of May 2026, only about 194 crypto firms within the EU have obtained formal MiCA authorization, whereas the number of crypto service providers previously registered or operating under various national regimes in Europe is estimated to be between 1,100 and over 3,000. Legal firm Hogan Lovells estimates that approximately 75% of platforms operating under the old registration regimes will lose their legal operating status after the grace period ends.

How are Major Exchanges Responding?

Platforms that obtained licenses early

• Coinbase x Luxembourg: In June 2025, the Luxembourg Financial Sector Supervisory Commission (CSSF) granted a MiCA license to Coinbase's European subsidiary. This integrated multiple local licenses previously held in Ireland, Germany, France, Italy, the Netherlands, Spain, etc., making Luxembourg its single EU licensing hub to serve the entire EU via the passporting mechanism.
• Kraken x Ireland: Kraken obtained CASP authorization from the Central Bank of Ireland, while also holding a Luxembourg entity and a MiFID derivatives license.
• OKX x Malta: OKX was the first major exchange globally to obtain MiCA authorization, granted by the Malta Financial Services Authority (MFSA), using Malta as its base for passporting across the entire EU.
• Bybit x Austria: On May 28, 2025, Bybit obtained authorization from the Austrian Financial Market Authority (FMA), with its EU headquarters in Vienna, serving 29 EEA member states.
• Crypto.com obtained its full license in Malta on January 27, 2025, and Gemini established itself in Malta in August of the same year. Bitstamp also chose Luxembourg, completing CSSF authorization in May 2025 (now under the Robinhood umbrella). eToro holds a CySEC license in Cyprus, while Robinhood completed registration in Lithuania.

Platforms with applications pending, not yet finalized

Bitget is a notable case currently. As of June 17, 2026, Bitget's application submitted to the Austrian FMA is still under review. Its EU headquarters is in Vienna, led by Oliver Stauber, formerly of KuCoin and Bitpanda. Until approval is granted, Bitget has suspended services for EEA users.

KuCoin's situation is more complex. It received authorization from the Austrian FMA in November 2025, but subsequently, due to vacancies in key anti-money laundering and sanctions compliance roles, the FMA prohibited it from formally commencing business. KuCoin has appealed this decision and currently still cannot accept new EU users.

Stablecoins: Mixed Fortunes

If the shakeout among exchanges is still ongoing, the shakeout in the stablecoin sector is complete. Tether's USDT, the world's largest stablecoin, never obtained MiCA authorization. CEO Paolo Ardoino stated publicly that MiCA requires the majority of EMT reserves to be deposited in EU-regulated bank accounts, which is incompatible with Tether's existing reserve model. The result was: Coinbase delisted USDT in December 2024, Crypto.com followed suit on January 31, 2025, and Binance and Kraken delisted it in March 2025, leading to USDT's complete exit from major compliant platforms in the EU.

Circle's USDC and EURC have both passed EMT authorization. As of June 2026, USDC's market capitalization is approximately $75 billion, making it the dominant stablecoin option in compliant EU scenarios. The Asset-Referenced Token (ART) framework represents the highest hurdle in MiCA, and to date, no issuer has obtained authorization.

The Most Affected Platforms

Binance

Binance is the most closely watched name in this reshuffle. By scale, Binance has over 300 million registered users globally and, as the undisputed leader in the exchange space, would normally be expected to qualify for MiCA application.

In January 2026, Binance submitted its MiCA application through the Hellenic Capital Market Commission (HCMC), positioning Greece as the core base for its European expansion. However, on June 16, Reuters reported, citing two sources, that the HCMC was planning to reject Binance's application. Regulators from Greece, Ireland, and Latvia jointly reviewed the application, expressing concerns over Binance's history of legal settlements and corporate governance structure.

On June 24, Binance officially announced the withdrawal of its application, stating it would re-file in another EU member state and expects approval "within the coming months," without revealing the target country. Until a license is obtained, we may witness Binance temporarily exiting the European market, potentially losing some market share.

In its official statement, Binance said: "Regarding user impact, Binance notes that some users may be affected. The specific circumstances depend on the user's country of residence and account status. The company is directly sending account-specific notifications to all EU users. These notifications will explain whether users need to take any action, the available options, relevant timelines, and support channels."

Binance's official statement. Source: Binance Square

MEXC and HTX

Compared to the high-profile Binance case, the situation with MEXC and HTX (formerly Huobi) is more muted. Neither platform holds a MiCA license, nor do they have any public record of having applied.

What Should Users Do?

For EU users, using unlicensed platforms after July 1 entails several practical risks: the platform may stop accepting new deposits, may require withdrawals to be completed within a specific timeframe, or may restrict account operations without prior notice. An analysis by OKX Europe found that between May 2025 and May 2026, approximately 41% of total downloads for European crypto apps came from exchanges without MiCA authorization, and an estimated 60% of European crypto users are currently using unauthorized platforms.

If a user's platform has already notified them about account migration, as experienced by some EU users of Bybit, Bitvavo, Kraken, Coinbase, Crypto.com, it typically involves re-completing KYC identity verification and accepting updated terms of service. This is a standard procedure under MiCA's anti-money laundering requirements.

Next Steps in Industry Regulation

MiCA is not the end point. The European Commission launched a formal review and consultation process for the MiCA regulation on May 20, 2026, accepting feedback until August 31, with a final report due to be submitted to the European Parliament by June 30, 2027. The 86 questions in this consultation round cover stablecoin competitiveness (especially the weaker position of euro stablecoins against dollar stablecoins), DeFi, staking and lending, RWA tokenization, and whether ESMA should gain direct supervisory authority over major CASPs.

France, together with Austria and Italy, explicitly supports the proposal for ESMA to directly supervise major CASPs to close the gap in standards between member states. Meanwhile, the Qivalis consortium, co-founded by 37 banks including BNP Paribas, ING, and UniCredit, is developing a compliant euro-pegged stablecoin, aiming to carve out a place for a euro digital currency in a market dominated by dollar stablecoins.

The industry's restructuring is still ongoing. Odaily will continue to track and report on developments.