Crypto exchanges place a shop in Europe and secure licenses to EU officials, bringing more competition to the regulated market in Europe.
So far this year, OKX, Coinbase, Bybit and Crypto.com have gained all licenses under the regulation of EU markets in crypto-assets (MICA) regulation. While it imposes strict requirements to various services in the crypto industry, it means that crypto exchanges in the European Economic Area (EEA) will all play the same policies.
Observers expect it to see Europe ahead of other constituents such as the United States, which is still in the process of developing a bad outline for stablecoins. In fact, European regulators are already discussing a second package of regulations, “Mica 2.0,” which will supplement gaps that have not been addressed at its initial repetition.
Mica may provide decent ground policies, but challenges remain for exchanges, including new incoming jockeying for the territory.
Why crypto exchanges move to Europe
The Mica Package is a complete effort of regulation from the EU that lasted four years from its onset to the end of it. Its seven titles contain laws and rules for platform regulations, token release, market abuse and more.
As bureaucrats in Brussels amended and intentionally in regulatory package, some of the crypto industry may lead to increased monitoring and less financial freedom.
Following can mean more red tape for users and exchanges alike, but executives have highlight MICA’s ability to promote stability, and can bring serious benefits for European -based exchanges.
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OKX Europe CEO Erd Ghoos told Cointelegraph that the transition to Europe provides the exchange of “a clear framework of regulation (MICA) that offers legal clarity and promotes long-term planning.”
MICA’s licensure includes “Pan-European Passport.” While exchanges should choose a certain jurisdiction where to apply, once they are certified, they can serve customers throughout 30 EEA countries.
Ghoos said the high consumer standards, which are now in accordance with expectations in the traditional financial sector, means “accessing institutional clients (…) for derivatives and portfolio management” as well as “euro-based pairs, access to local payments and regional support.”
Konstantins Vasilenko, Co-Founder and Chief Business Development Officer of Paybis, previously said to the cointelegraph Trade volumes from EU customers rose 70% quarter-on-quarter to Q1 2025 after Mica was performed. He said this was probably due to an increase in institutional involvement.
Lukas Enzersdorfer-Conrad, Deputy CEO of Bitpanda, told Cointelegraph, “It’s early, and there are many other factors that affect markets today, but we believe Mica has a positive effect.”
Challenges for compliance and possible integration -sa
Setting up with the EU will not come without challenges.
A spokesman for BYBIT in Cointelegraph said, “Unlike other regions, operations in Europe under (MICA) demand strict controls around investor protection, capital requirements, operational transparency and compliance with anti-money laundering.”
These requirements mean significant structural changes in exchange operations and difficult to manage “without compromising the user experience,” the spokesman said.
For OKX, the difference -European client’s difference is the main challenge. Ghoos said entry into the EU means “balancing localization (language, customer service, financial standards) maintaining global infrastructure and scalability.”
OKX wants localized products “for each and every market, so it will take time to make sure it is done properly.”
Some executives expect a change in the European crypto landscape. The Bybit spokesperson said MICA would result in aggregation, “separate serious market players from unlicensed actors and driving healthy, confidence-based competition.”
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Smaller exchanges can be “struggling with the cost and complexity of responding to MICA standards,” each Ghoos. One integration is “more favorable to larger, advanced tech (…) exchanges that can use scale, resources and regulatory preparations.”
These large exchanges include OKX as well as Coinbase and Crypto.com, all of which are certified MICA. Coinbase and Crypto.com did not immediately respond to Cointelegraph’s request for comment.
Some accept the shaking. According to Bitpanda’s EnzersDorfer-Constable, many platforms have run in Europe “for years” without addressing the same regulations that her exchange of indigenous Europe “followed from one day.”
Through major exchanges that move inside and under Mica, “they are held at the same standard – and that is a necessary shift.”
Europe has a low adoption in Crypto
More and larger exchanges are moving to Europe, which, on the other hand, boasts a lower mark for crypto adoption than other parts of the world. Compared to other countries, EU members generally regulate e-paying options and relatively stable money.
With Mica bringing more crypto businesses to the continent, how much more exchange can their piece of very slow -growing pie get?
Enzersdorfer-Concoming Europe’s adoption rate is focused on “trust and speed regulation,” emphasizing long-term growth. He said that in clear regulations today with the full effect, “we believe that demand and confidence will continue to increase.”
This increased trust can have knock-on effects for exchanges in the form of increasing crypto adoption in the EU. If institutions see crypto as a safer form of investment with traditional care, they may be more willing to jump. EnzersDorfer-Konrad said:
“Clear policies increase trust, and adoption of trust in adoption. Over time, it will open a broader retail participation and allow institutions to move with confidence.”
The European market may be set for expanding amid increased institutional involvement, but big new enters such as OKX and Coinbase and a integration of smaller players can signal a Turf war for Europe.
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