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On July 1st of this year, a new legislative act, the MiCA (Markets in Crypto-Assets) Regulation, will come into full force in the European Union. This document aims to standardize the rules for working with digital assets, introducing an important innovation: the provision of any services related to cryptocurrencies will be possible only with an official European license. Platforms that do not obtain the necessary permission will be forced to cease operations in the EU.

The consequences of this move are expected to be significant. According to Alik Fasel, Director of Partnerships at Swissborg, more than ten million European cryptocurrency users will be forced to change their trading platforms. Fasel shared this information with CoinDesk, emphasizing that this is a real possibility that will become reality in the coming days.

The European Financial Markets Authority (ESMA) issued an early warning to crypto services against serving EU clients without authorization after July 1st. The regulator recommended that companies arrange for the transfer of their clients' assets either to licensed platforms or to users' personal wallets. However, full responsibility for the security of funds and the correct completion of transactions rests with the service providers themselves.

At the end of 2024, there were more than 3,000 virtual asset service providers (VASPs) operating in Europe. However, analysts at OKX Europe predict that up to 80% of them will be unable to adapt to the new conditions. This means hundreds of platforms could leave the market, and their clients will have to urgently seek alternatives. Although some exchanges have already begun restricting access for EU residents, the overall picture remains unclear.

Against this backdrop, major players that have already received licenses have stepped up their marketing efforts. Coinbase and OKX recently announced bonus programs for new customers, including rewards for deposits and transfers. Essentially, an active battle has begun for an audience that has found itself without their usual services. But, as Fazel notes, choosing a new platform isn't limited to financial offerings alone. Important factors include the exchange's reputation in the local market, its security policy, functionality, and even its community. Experienced investors understand that it's easy to make mistakes in a rush.

The situation with Binance, the world's largest crypto exchange, deserves special attention. Despite numerous attempts, the company failed to obtain a MiCA license. Binance founder Changpeng Zhao stated that the application met all requirements, but political obstacles arose at the final stage, preventing the process from being completed. He didn't go into details, but implied that external pressure was involved.

Earlier, the French publication The Big Whale suggested that the personal stance of European Central Bank President Christine Lagarde may be behind Binance's license denial. Lagarde reportedly fears stablecoins as a threat to the emerging digital euro and used her influence to block Binance's entry into the European market. There is no official confirmation of this theory, but its very existence has added to the uncertainty. Binance has already withdrawn its application, submitted through its Greek subsidiary, and notified EU clients of the imminent termination of services.

Another major player, Bybit, has taken a different approach. The company announced a gradual restriction of access for users from European Economic Area countries to its global platform, Bybit Global. Instead, a regulated platform, Bybit EU, operating under a MiCA license, has been launched for Europeans. However, switching to it requires creating a new account and undergoing full verification, which creates additional inconvenience and may discourage some users.

Thus, the European cryptoasset market is undergoing a radical transformation. The transition from an unregulated to a licensed space, intended as a measure to increase transparency and protect investors, is in practice leading to a mass exodus of participants and forced user migration. For many cryptocurrency holders, this process will pose a significant challenge, especially given the tight timeframe and limited number of available alternatives.