Coinbase and OKX Attempt to Swoop up EU Users Affected by MiCA Restrictions

Cryptocurrency exchanges already approved to operate in European Union member states under the soon-to-be enforced Markets in Crypto-Assets (MiCA) framework are incentivizing users from companies that failed to gain license approval.

With MiCA restrictions set to be enforced starting on July 1, executives of cryptocurrency exchanges including Coinbase and OKX have taken to social media to sway users from soon-to-be unauthorized companies, like Binance and Bybit Global. 

The world’s largest crypto exchange, Binance, said that it would restrict services for EU-based users after withdrawing its MiCA application last week. Bybit Global on Monday said access to services for users in the European Economic Area “will be progressively limited” starting on July 1, though its Bybit EU arm is authorized to operate under MiCA through its Austrian licensee.

As of Monday, regulators in EU member states had approved 244 total licenses for crypto companies under MiCA. Of those, about a quarter (57) came from Germany’s Federal Financial Supervisory Authority, or BaFin. Authorities in Greece, Hungary, Poland, Portugal and Romania had not issued any licenses as of Friday.

Erald Ghoos, CEO of OKX Europe, said on Monday that the exchange would offer 8% on new deposits, suggesting that Binance and Bybit users transfer their funds. Coinbase CEO Brian Armstrong said on Friday that the company would offer a 5% transfer bonus for users before July 13, about two weeks after MiCA takes effect. Kraken, also authorized under MiCA, offered a $1.1 million prize draw for euro deposits.

Source: OKX CEO Mingxing “Star” Xu

Under MiCA, crypto companies offering services to EU-based users in 27 countries must be licensed as a Crypto-Asset Service Provider (CASP) by a regulator in one of the member states. While many exchanges, including Coinbase, FalconX, Kraken and OKX, have obtained licenses to operate after the June 30 deadline, the absence of others could significantly impact the region’s crypto market.

Related: Binance faces EU service limits next week as MiCA rules take effect

As Bybit pulls back in EEA, MENA business expands

While Bybit moves to limit its services in the EEA, the company is ramping up business in the Middle East.

Derek Dai, Bybit’s head for the Middle East and North Africa, said at a Tel Aviv event on Sunday that the company was stepping up efforts to build in the region as it restricted certain services for EU users.

Bybit MENA head Derek Dai (left) and Collider partner Eylon Aviv (right) at Sunday’s event in Tel Aviv. Source: Cointelegraph

“Our business strategy for MENA has been to differentiate marketing and business plans to make sure that each group of customers are well served,” said Dai. “We are creating halal products that meet the needs of more conservative customers in a number of the Arabic countries while focusing on derivative products that are of interest to younger investors in Morocco who are starting to develop their trading skills and interests.”

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