OKX Europe CEO says 80% of crypto exchanges may not survive EU MiCA rules

As MiCA transition periods end across the EU by July 1, ESMA has told unauthorized crypto-asset service providers to wind down services, while more than 200 firms already hold full authorization.

Summary

OKX Europe CEO Erald Ghoos said about 80% of crypto exchanges may be unable to survive under the EU’s MiCA framework, pointing to a significant market shakeout as the bloc’s new licensing regime moves into stricter enforcement. The pressure is increasing as transition periods end across the EU by July 1, and ESMA, the European Securities and Markets Authority, said on June 24 that unauthorized CASPs, or crypto-asset service providers, should withdraw from related business activities in an orderly manner. Twenty of the EU’s 27 member states have already ended their transition periods, and more than 200 providers have secured full authorization.

Terms & Concepts
  • MiCA: The European Union’s Markets in Crypto-Assets regulatory framework for crypto businesses.
  • ESMA: The European Securities and Markets Authority, the EU securities markets regulator.
  • CASPs: Crypto-asset service providers regulated under MiCA.