Svmuu News: With the European Union’s Market in Crypto-Assets Regulation (MiCA) set to take full effect on July 1, industry insiders expect the European crypto market to undergo a large-scale platform shakeup, with potentially more than 10 million users facing the need to switch trading platforms.
Alex Fazel, an executive at SwissBorg, stated that the new MiCA regulations are forcing a large number of exchanges to cease or restrict their services in the EU. The European Securities and Markets Authority (ESMA) has warned that institutions without MiCA licenses must gradually exit the market after the deadline and assist users in transferring their assets to compliant platforms or self-custody wallets.
Data shows that as of 2024, there may be more than 3,000 virtual asset service providers (VASPs) in Europe, of which approximately 80% are expected to exit the market following the regulatory transition.
Analysts note that several exchanges, including Binance, have already adjusted their European business strategies in advance, while others—such as Coinbase and OKX—are using incentives to encourage users to migrate. Against the backdrop of tightening regulations, industry competition is shifting from “subsidized customer acquisition” to “competition based on compliance and trust.” (CoinDesk)