Crypto exchanges are increasingly establishing operations in Europe, specifically under the EU's Markets in Crypto-Assets (MiCA) regulation, which has introduced stricter frameworks for various services within the industry. Key players such as OKX, Coinbase, Bybit, and Crypto.com have secured licenses, enabling them to operate legally across the European Economic Area (EEA). This move is expected to enhance Europe's standing as a more stable regulatory environment compared to the United States, which is still working on its crypto framework. MiCA aims to provide consistent regulations, although it poses compliance challenges for exchanges. Benefits include a pan-European passport for licensed firms, allowing them to serve customers across 30 EEA countries. Executives believe that with improved compliance and consumer standards akin to traditional finance, the trust in crypto will grow, potentially increasing institutional investment. The landscape is expected to evolve with new entrants and possible consolidations among smaller exchanges, especially as regulators continue to address regulatory gaps with future packages, such as MiCA 2.0.

Source 🔗