The EU Act on the Regulation of Encrypted Assets Markets will enter key nodes on 1 July. As the transition period draws to an end, many encrypted platforms that have not yet acquired licence plates are suspending or contracting their operations in Europe, and the market is expected to drive a large number of users towards mandated platforms.

Unlicensed platform facing exit

According to reports, EU regulators have requested encryption companies that do not have a MiCA license to phase out their operations and assist in the transfer of clients to compliance service providers. According to SwissBorg executive Alex Fazel, this round of adjustments could allow over 10 million users to re-examine the trading platform.

Industry sources estimate that Europe had about 3000 registered virtual asset service providers prior to the implementation of the MiCA. OKX Europe CEO Erald Ghoos stated that up to 80 per cent of them may not be able to continue after the new deadline.

The exchange began to restructure its operations in Europe.

Before the new regulations entered into force, there were a number of platforms to adjust European market arrangements. It is mentioned that Binance has announced changes to some of the European services, while other platforms are still applying for a MiCA mandate or adjusting existing products.

At the same time, Coinbase and OKX launched a charge and transfer incentive last week to attract users who migrate because the platform exits. In Fazel ' s view, such preferences could facilitate some of the user movements, but should not be the main basis for selecting the platform.

Stabilizer issuer fine cap 12.5%

In addition to the trading platform, EU controls on issuers of stable currencies are being tightened simultaneously. Last Friday, the European Banking Authority (EBA) proposed a framework of penalties, which could be up to 12.5 per cent of annual turnover, for important stable issuers who violate the provisions of the MiCA.

This consultation will continue until 28 September, after which the method of calculation of the relevant penalties will be finalized. As the MiCA enters the full implementation phase, the European encryption market is moving from a previously more fragmented business to a business-centric pattern.