MiCA in Full Effect: CASP License Becomes a Hard Requirement
The EU's Markets in Crypto-Assets (MiCA) regulation came into full effect on July 1, 2026. All crypto asset service providers (CASPs) that offer services to EU customers must now hold a license granted by a member state's competent authority. According to data from the European Securities and Markets Authority (ESMA), the pass rate for CASP applications has hovered around 17%, as many platforms fail to meet stringent AML, KYC, and operational standards. The regulation introduces a unified regime across 27 member states, effectively creating a single market for compliant crypto services.
Binance Stopped at the Gate, Shifts to France
Binance, the world's largest cryptocurrency exchange by volume, has been forced to suspend most of its services in the EU after its license application in Greece was rejected by the Hellenic Capital Market Commission. In response, Binance has redirected its compliance efforts to France, where it has filed a new CASP application with the Autorité des Marchés Financiers (AMF). However, the outcome remains uncertain, and Binance's European market share is at risk as competitors advance.
Bybit, Coinbase, and Others Secure Passports
Bybit has successfully obtained a CASP license from the Austrian Financial Market Authority, allowing it to serve clients across all EU countries via MiCA's passporting regime. Similarly, Coinbase, Kraken, and OKX—all of which already held licenses in individual member states (e.g., Coinbase in Ireland, Kraken in Lithuania, OKX in Malta)—have now received EU-wide passports. This creates a clear regulatory moat: compliant platforms can offer spot trading, custody, and staking services across the entire bloc, while unlicensed platforms are effectively blocked. The European crypto market is undergoing a rapid consolidation around compliance, with early movers like Bybit and established US-based exchanges leveraging their regulatory commitments to capture market share from Binance and other laggards.