FinanceMiCA's Upcoming Deadline May Leave 10 Million EU Crypto Users Searching for New Platforms
With MiCA set to be fully enforced on July 1, Alex Fazel from SwissBorg advised CoinDesk that users should opt for platforms designed to comply with the stricter EU regulations.
By Olivier Acuna|Edited by Jamie CrawleyUpdated Jun 29, 2026, 3:51 p.m. Published Jun 29, 2026, 3:03 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on According to Alex Fazel of SwissBorg, around 10 million users are now at risk of losing access to their crypto services due to platform suspensions on July 1. (Shutterstock/Modified by CoinDesk)SummaryShow- The critical July 1 deadline under the EU's Markets in Crypto-Assets (MiCA) regulations is compelling many unlicensed exchanges to cease or limit their operations, which may displace over 10 million users.
- EU authorities have instructed crypto firms operating without a MiCA license to terminate their services and assist customers in transitioning to licensed providers, while suggesting penalties of up to 12.5% of annual revenue for significant stablecoin issuers that fail to comply.
- Industry leaders estimate that nearly 80% of Europe’s approximately 3,000 virtual asset service providers may not survive past the deadline, leading exchanges like Binance to cut back and competitors such as Coinbase and OKX to entice users with offers.
The impending July 1 deadline for the EU's Markets in Crypto-Assets (MiCA) regulations could result in over 10 million users needing to find new platforms, as indicated by Alex Fazel, chief partnership officer at SwissBorg, during a CoinDesk interview.
This new deadline enforcing the EU's crypto regulations is prompting numerous exchanges to halt or limit their services. The European Securities and Markets Authority (ESMA) has issued warnings to crypto-asset service providers operating without a MiCA license, urging them to wind down operations and assist customers in transitioning to authorized providers or self-hosted wallets.
In conjunction with this, the European Banking Authority (EBA), which oversees major stablecoin issuers under MiCA, has proposed a penalty framework that could impose fines of up to 12.5% of annual turnover for major issuers violating the regulations. This consultation will remain open until September 28, when the final methodology will be established.
As of 2024, Europe was reported to have over 3,000 registered virtual asset service providers (VASPs) prior to MiCA implementation. According to Erald Ghoos, CEO of OKX Europe, it is estimated that as many as 80% of these providers may not persist after the deadline.
The immediate consequences will affect customers whose exchanges are withdrawing services, Fazel noted in the interview.
Several exchanges, including Binance, have made announcements regarding changes to their European operations in advance of the July 1 deadline, while others are still pursuing MiCA approval or modifying their offerings.
Fazel commented, "When a platform reduces its services, unfortunately, users are the ones who suffer, akin to a tenant being abruptly evicted by their landlord without warning. People should not just keep searching for a new place; they need to choose one that is built to last."
"When selecting a new platform, price is one factor, but we must also consider identity alignment, platform culture, security, features that will be used, and the community being joined," he elaborated. "Incentives may diminish, but a trusted platform remains constant."
He highlighted that Coinbase and OKX recently offered deposit and transfer bonuses to attract new clients while some exchanges are scaling back their European operations.
While these offers might convince some users to switch, Fazel emphasized that they should not be the primary reason for making a choice. "Every exchange is racing to offer bigger bonuses and louder incentives," he said. "However, trust is earned through a local track record, not just through monetary offers."
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Why it matters:
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