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Updated Jun 29, 2026, 3:51 p.m. Published Jun 29, 2026, 3:03 p.m.2 min read
Alex Fazel of Swisborg says about 10 million or more users are now faced with finding a new crypto service provider as their current platform suspends services on July 1. (Shutterstock/Modified by CoinDesk)Summary
A key July 1 deadline under the European Union’s Markets in Crypto-Assets rules is forcing dozens of unlicensed exchanges to halt or restrict services, potentially displacing more than 10 million users.EU regulators have warned crypto firms operating without a MiCA license to wind down operations and help customers move to authorized providers, while proposing fines of up to 12.5% of annual turnover for major stablecoin issuers that breach the rules.Industry executives estimate that as many as 80% of Europe’s roughly 3,000 pre-MiCA virtual asset service providers may not continue after the deadline, prompting exchanges like Binance to scale back and rivals such as Coinbase and OKX to court users with incentives.The European Union's (EU) July 1 Markets in Crypto-Assets (MiCA) deadline could leave more than 10 million users looking for a new platform, Alex Fazel, chief partnership officer at Swissborg, told CoinDesk in an interview.
The latest deadline implementing the EU's crypto rules is forcing dozens of exchanges to halt or restrict services, with the European Securities and Markets Authority (ESMA) warning that crypto-asset service providers operating without a MiCA license after July 1 should wind down their businesses and help customers move to authorized providers or self-hosted wallets.
The deadline also comes as the European Banking Authority (EBA), which directly supervises significant stablecoin issuers under MiCA, proposed a framework on Friday that would allow fines of up to 12.5% of annual turnover for major issuers that breach the regulation. The consultation runs until Sept. 28, after which the methodology will be finalized.
Europe was thought to have had more than 3,000 registered virtual asset service providers (VASPs) as of 2024, according to the pre-MiCA categorization. As many as 80% of them will not continue after the deadline, Erald Ghoos, CEO of OKX Europe, told CoinDesk.
The immediate impact will fall on customers whose exchanges are withdrawing services, Fazel told CoinDesk
Several exchanges, including Binance, have announced changes to their European services ahead of the July 1 deadline, while others continue seeking MiCA authorization or adjusting their products.
"When a platform pulls back, users unfortunately absorb the shock, like a tenant being evicted by its landlord with no notice," Fazel said. "People shouldn't keep hunting for a new home. They should pick one built to stay."
"When you're choosing a new home, the price is one thing."But we need to look at the identity match, the platform, its culture, its security, the features you'll actually use, and the community you're joining."
"Incentives fade," he added. "A home you trust doesn't."
Coinbase and OKX last week offered deposit and transfer incentives to attract new users amid some exchanges scaling back services in Europe.
Fazel said those offers may persuade some customers to switch, but argued they should not be the deciding factor.
"Every exchange is piling into the same rat race of bigger bonuses, louder cheques," he said. "But money does not earn trust. A local track record does."
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