Key facts
- Several cryptocurrency exchanges authorized under the EU's Markets in Crypto-Assets (MiCA) framework are offering incentives to users of unlicensed exchanges.
- Binance and Bybit Global are limiting services in the EU starting July 1 due to MiCA restrictions.
- OKX, Coinbase, and Kraken are providing bonuses and prize draws to attract users from these restricted exchanges.
- As of Monday, 244 crypto licenses had been approved under MiCA across EU member states.
Cryptocurrency exchanges that have secured authorization under the European Union's upcoming Markets in Crypto-Assets (MiCA) regulations are actively seeking to onboard users from platforms that will soon face restrictions. With MiCA set to take effect on July 1, exchanges like Coinbase, Kraken, and OKX are offering financial incentives, including transfer bonuses and prize draws, to attract customers from companies such as Binance and Bybit Global, which are scaling back their EU operations.
Binance announced it would restrict services for EU-based users after withdrawing its MiCA application, while Bybit Global stated it would progressively limit access for users in the European Economic Area starting July 1. Despite these withdrawals, 244 crypto licenses have been approved by EU member states under MiCA, with Germany's BaFin issuing the largest share. OKX Europe's CEO, Erald Ghoos, announced an 8% bonus on new deposits for users transferring funds, and Coinbase CEO Brian Armstrong stated the company would offer a 5% transfer bonus. Kraken is also participating by offering a $1.1 million prize draw for euro deposits.
Under MiCA, crypto companies must be licensed as a Crypto-Asset Service Provider (CASP) by a regulator in an EU member state to offer services to users in the 27 countries. While many exchanges have obtained these licenses, the absence of others is expected to significantly impact the region's crypto market. Meanwhile, Bybit is reportedly expanding its business in the Middle East and North Africa, with its MENA head, Derek Dai, discussing strategies to serve diverse customer needs in the region.