EU’s MiCA Reshapes the Global Crypto Competitive Landscape

The European Union (EU)’s Markets in Crypto-Assets (MiCA) regulation has concluded its transition period.

From July 01, 2026, all crypto-asset service providers serving EU clients must hold MiCA authorization or cease providing crypto services. Firms operating without a license were required to implement an orderly wind-down immediately, with no further extensions permitted, and non-compliant operators face penalties under the new enforcement framework.

This development sent shockwaves through the global cryptocurrency industry as its largest player failed to secure authorization before the deadline. On June 26, Binance told customers in the EU that it was suspending some services after failing to secure a MiCA licence on time.

Failed licensing attempts

A few days prior to announcing the suspension, Binance withdrew its MiCA license application in Greece, stating that it was pursuing authorization in another EU member state.

The company had previously committed to hiring many staff and opening an office in Greece and promised to bring billions of euros in investment to the country, two people familiar with the process told the Financial Times (FT).

However, the Greek application ultimately failed due to concerns across many areas, including its money laundering controls and whether co-founder Changpeng Zhao, passed the “fit and proper” test, the persons said.

People with knowledge of the process told Reuters that Binance had held talks with regulators in Ireland and Latvia as well, but faced resistance in these countries too. Officials expressed concerns about the company’s past penalties for money laundering, its complex international structure, and what they view as a risk-taking culture.

Binance has been the subject of repeated lawsuits and challenges from regulatory authorities worldwide. The UK’s Financial Conduct Authority ordered Binance to stop all regulated activity in the country in June 2021 after it found that the firm failed to meet regulatory requirements. In the US, Binance pled guilty in November 2023 to violating anti-money laundering (AML) rules and paid a US$4.3 billion fine.

Co-founder Zhao resigned as CEO, pleaded guilty in violating the Bank Secrecy Act and the International Emergency Economic Powers Act, and was sentenced to four months in prison in April 2024.

Despite pledges of zero tolerance for illicit activities on its exchange after its conviction, investigative journalists have found that Binance continues to profit from money laundering for organized crime groups and sanctioned entities, including Russia and Iran, which allegedly use Binance accounts to move money.

The FT reported that Binance now intends to approach France to secure a MiCA license despite prior challenges there as well. Last year, French officials opened a judicial investigation into the company. A spokesperson for the company denied the allegations and said it will vigorously fight any charges made, the Wall Street Journal reported.

Competitors rush in

With Binance suspended from the EU, rivals are rushing to capitalize on the opportunity to gain new customers, with crypto exchanges Coinbase and OKX now offering sign-up bonuses to users across Europe.

Brian Armstrong, CEO and founder of Coinbase, wrote on X, offering sign-up bonuses exclusively to users in Germany, France, Italy, Belgium, Poland, Sweden and the UK who subscribe to Coinbase One, its premium subscription service featuring zero-fee trading, boosted interest rewards, and priority customer support.

Star Xu, OKX founder and CEO, similarly offered bonuses to new users in Europe, claiming in an X post one of the company’s biggest welcome campaigns for eligible users in the European Economic Area (EEA), including welcome bonuses and deposit matching of up to 8%.

“MiCA marks the beginning of a new chapter for digital assets in Europe,” Xu said. “If you’re looking for a regulated platform built for the long term, we’re excited to welcome you to OKX.”

MICA is affecting not only crypto service providers but also stablecoin issuers. Licensed exchanges, including Coinbase, Kraken, and Crypto.com, have all delisted Tether’s USDT for retail users ahead of the deadline, Be in Crypto reports.

Tether never applied for the e-money-token authorization MiCA requires, locking its roughly US$185 billion worth of USDT out of bloc. Circle stands ready to absorb this market share after securing MiCA compliance for both USDC and its euro-denominated stablecoin EURC. Among the top ten stablecoins by market capitalization, Circle is the only issuer that cleared that requirement.

A new competitive landscape

Currently, there are 283 regulated crypto-asset service providers in the EU, according to the European Securities and Markets Authority. Notable holders include Coinbase and Bitstamp, which operate with licenses from Luxembourg; Kraken, which holds a license from Ireland; well as OKX and Gemini, which secured licenses from Malta.

Beyond crypto-native companies, several banks and fintech firms have also secured licenses. BBVA received MiCA authorization in Spain, neobroker Trade Republic and digital bank N26 secured German approvals covering crypto services within their broader platforms, and Clearstream and Société Générale-Forge are licensed for institutional asset servicing and stablecoin issuance from Luxembourg and France, respectively.

Swiss presence includes at least six approved companies: crypto firm Bitcoin Suisse, digital asset banking group Sygnum, digital wealth specialist Floin, institutional digital asset trading venue Rulematch, asset management firm Wyden Capital, and online financial services provider Swissquote.

MiCA came into force in late 2024 and companies had 18 months to fully transition to the correct licences. The regulation filtered out many companies partly because of its significantly higher regulatory, operational, and financial standards than most firms previously met.

These requirements increased legal scrutiny and compliance costs significantly. According to Finance Magnates, licensing costs alone run between EUR 500,000 and EUR 2 million, with annual compliance adding EUR 250,000 or more.

To put the effect of MiCA into perspective, 3,389 crypto companies were serving EU customers as of May 2025 under the previous patchwork of national rules, according to VASPnet. With less than 300 having secured MiCA authorization, this implies a conversion rate of just 8%.

Featured image: Edited by Fintech News Switzerland, based on images by agartist and coffeemill via Magnific

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