MiCA is absolutely in pressure, however the European Securities and Markets Authority (ESMA) and nationwide regulators are warning that crypto asset service suppliers working with out authorization should both safe licenses or wind down as transitional durations expire into 2026.
Underneath MiCA, licensed exchanges face capital, asset segregation, disclosure, and governance necessities that materially increase the price of doing enterprise.
To study extra, crypto.information spoke with KuCoin CEO BC Wong on the heels of KuCoin’s latest press convention in Vienna, in addition to its EU VIP Gala on Jan. 28.
CN: How does KuCoin view aggressive dynamics in Europe over the subsequent 18–24 months, and do you anticipate stricter enforcement to speed up consolidation in favor of MiCA-licensed venues like KuCoin EU?
Wong: As transitional durations expire and supervisory expectations change into extra specific into 2026, the European market is shifting right into a part the place regulatory compliance is a baseline requirement relatively than a differentiator. MiCA establishes a excessive customary for governance, operational resilience, and client safety, and it’s affordable to anticipate that not each participant will select to function beneath that framework.
Over the subsequent 18–24 months, we anticipate a gradual normalization of the market, with customers and institutional companions more and more prioritizing regulated, clear venues which are constructed for long-term participation within the European monetary system. KuCoin EU was designed with this surroundings in thoughts from the start, with compliance and sustainability embedded into its working mannequin relatively than launched in response to enforcement.
CN: How is KuCoin balancing MiCA-driven compliance overhead with sustaining deep liquidity, aggressive charges, and product breadth versus unregulated or offshore rivals nonetheless serving EU customers?
Wong: MiCA unquestionably raises the price of working in Europe, however we view compliance as a strategic funding, not a constraint. The stability comes from operational scale and disciplined execution, not from decreasing requirements.
KuCoin EU advantages from shared know-how, liquidity infrastructure, and institutional partnerships throughout the broader KuCoin ecosystem, whereas compliant with regulatory necessities. Over time, we imagine belief and regulatory readability will outweigh short-term value benefits supplied by unregulated alternate options.
Implementation, market construction
Individually, crypto.information requested KuCoin’s Christian Niedermueller about how Austria has positioned itself as an early, comparatively fast-moving MiCA jurisdiction and about KuCoin’s resolution to make Vienna its European hub.
CN: From a market-structure perspective, how essential is it that Vienna turns into a liquidity and compliance hub for crypto within the EU, relatively than exercise fragmenting throughout a number of smaller MiCA facilities?
Niedermueller: Vienna’s significance lies in demonstrating that MiCA might be carried out effectively, predictably, and at scale. A robust hub helps anchor supervisory dialogue, compliance experience, and operational confidence, which in flip helps liquidity formation.
This doesn’t imply centralizing all exercise in a single metropolis, however relatively avoiding extreme fragmentation that would weaken market depth and consistency. Properly-functioning hubs like Vienna assist reinforce the EU’s single-market ambition beneath MiCA relatively than undermining it.
Model/sports activities partnership section
CN: You’re unveiling a long-term partnership with a world-class skilled bike owner on the identical second KuCoin is emphasizing MiCA compliance and ‘Belief in Movement’ in Europe. What concrete compliance and consumer-protection messages are you constructing into this sports activities partnership in order that it goes past model visibility and truly strikes the needle on consumer belief with EU regulators and first-time retail traders?
A: The partnership is constructed round shared values, self-discipline, accountability, and long-term dedication, relatively than short-term promotion. “Belief in Movement” displays how KuCoin EU operates beneath MiCA: clear guidelines, regulatory oversight, and clear client protections.
We’re integrating instructional and responsible-investing messages into the partnership, specializing in threat consciousness and the significance of utilizing regulated platforms. This ensures the collaboration helps belief with customers and regulators, not simply model recognition.
Q: Some MiCA-compliant exchanges are explicitly utilizing licensing standing of their advertising narrative to distinguish from unregulated rivals. Will KuCoin’s new EU-facing campaigns and influencer content material clearly spotlight the MiCA license and related investor protections, and the way do you keep away from crossing the road into overly promotional messaging in a extremely regulated surroundings?
A: Sure, however rigorously and factually. We are going to clearly state that KuCoin EU is MiCA-licensed and clarify what meaning in sensible phrases, akin to asset segregation, governance requirements, and disclosure obligations.
We’re deliberately avoiding exaggerated or comparative claims. The aim is to tell, not persuade, which aligns with each regulatory expectations and our long-term method to constructing credibility in Europe.
For product and market roadmap
Q: MiCA’s later phases, particularly round tokenized securities and RWAs, are anticipated to be absolutely operational by mid-2026, with ESMA pilots already underway. How is KuCoin EU making ready its itemizing, custody, and market-making infrastructure for tokenized bonds, actual property, or different RWAs, and do you plan to compete instantly with conventional exchanges in that section, or give attention to native crypto property first?
A: Our method is incremental and regulation-led. Within the close to time period, our focus stays on strengthening infrastructure for core crypto property beneath MiCA, whereas carefully monitoring ESMA pilots and rising steerage on tokenized securities and RWAs.
On the infrastructure degree, we’re investing in custody, compliance workflows, and market-making frameworks that would help RWAs as soon as regulatory circumstances are absolutely outlined. Our strategic motion will rely upon regulatory readability and consumer demand, however we are going to prioritize accountable entry over pace.
Q: A number of EU jurisdictions, together with Spain and others, are actually locking in stricter MiCA-based licensing and transaction-reporting regimes from 2026 onwards, with warnings that non-compliant platforms will probably be pushed out of the market. Which EU markets do you see as probably the most strategically essential for KuCoin EU beneath this new enforcement panorama, and what concrete KPIs—consumer development, volumes, institutional onboarding—are you utilizing to measure success over the subsequent two years?
A: As MiCA enforcement turns into extra constant throughout member states from 2026 onwards, strategic significance is more and more outlined by market depth, regulatory maturity, and the power of supervisory frameworks, relatively than by short-term development potential alone.
Over the subsequent two years, success will probably be assessed by means of indicators of sustainable market participation: regular and compliant consumer development, the standard and resilience of buying and selling volumes, institutional engagement, and constructive regulatory outcomes. On this surroundings, efficiency is finest measured not by short-term exercise spikes, however by whether or not a platform earns long-term confidence from regulators, institutional companions, and retail customers alike.
