Cryptocurrency exchanges are accelerating their expansion into Europe and actively seeking approval from EU regulatory authorities, driving the formation of a new competitive landscape in the regulated European market.

This year, OKX, Coinbase, Bybit, and Crypto.com have all successfully obtained operating licenses under the EU's Markets in Crypto-Assets Regulation (MiCA). Although the regulation imposes strict requirements on various services in the industry, it also means that cryptocurrency exchanges within the European Economic Area (EEA) will operate under a unified regulatory framework.

Analysts point out that this will position Europe ahead of other major jurisdictions, including the United States, in the compliance process. The U.S. is still refining its preliminary regulatory framework for stablecoins, while Europe has already begun discussions on follow-up regulatory supplements like "MiCA 2.0" to fill the gaps not covered by the original regulation.

Despite MiCA establishing a relatively comprehensive set of foundational rules for the industry, competition and challenges remain for exchanges, including new entrants.

MiCA, as the most systematic regulatory framework for crypto assets in the EU to date, took four years from initiation to formal implementation. The regulation is divided into seven chapters, covering various aspects such as platform regulation, token issuance, and market manipulation.

In Brussels, policymakers have repeatedly revised and deeply discussed this regulatory framework, and some industry insiders still debate the pros and cons of MiCA, with concerns that the regulation may lead to stricter oversight and restrictions on monetary freedom.

While compliance requirements will undoubtedly increase administrative processes, many industry executives believe that MiCA can bring greater stability to the industry, which is a significant positive development for exchanges rooted in Europe.

Erald Ghoos, CEO of OKX Europe, stated that entering the European market provides exchanges with a "clear and defined regulatory framework (MiCA), bringing legal certainty and aiding long-term development planning."

Obtaining a MiCA license also means qualifying for a "pan-European passport." Although exchanges must choose a specific jurisdiction to apply, once certified, they can serve clients in 30 countries within the European Economic Area.

Ghoos also pointed out that consumer protection standards have now aligned with those of the traditional financial industry, meaning "the ability to reach institutional clients… achieve derivatives and portfolio management," while also "supporting euro trading pairs, connecting local payment channels, and regional services."

Konstantins Vasilenko, co-founder and Chief Business Development Officer of Paybis, previously told Cointelegraph that since MiCA came into effect, trading volume from EU clients has increased by 70% quarter-on-quarter in the first quarter of 2025. He believes this is mainly due to increased institutional participation.

Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, told Cointelegraph, "We are still in the early stages, and the market is influenced by various factors, but we have already seen MiCA starting to have a positive effect."

Operating in Europe presents numerous challenges.

A Bybit spokesperson told Cointelegraph, "Unlike other regions, operating in Europe under MiCA requires strict adherence to investor protection, capital requirements, operational transparency, and anti-money laundering compliance."

These requirements mean that exchanges need to make significant adjustments to their overall operational structure, and "managing these changes without affecting user experience is highly challenging," the spokesperson added.

For OKX, the diversity of European users is a major challenge. Ghoos noted that entering the EU market means "seeking a balance between localization (including language, customer service, and financial standards) and global infrastructure and scalability."

OKX is committed to creating localized products for "every market," so ensuring this "requires time to achieve gradually."

Some industry executives expect the landscape of the European cryptocurrency industry to change. A Bybit spokesperson believes that MiCA will drive industry consolidation, "distinguishing true market participants from unlicensed operators and promoting healthy competition based on trust."

Ghoos stated that smaller exchanges may "struggle to cope with the high costs and complex processes required to meet MiCA standards." Industry consolidation will "favor those exchanges that are larger, more technologically advanced, and can fully leverage their resources and compliance capabilities […]".

These large exchanges, including OKX, Coinbase, and Crypto.com, have all obtained MiCA certification. As of the time of publication, Coinbase and Crypto.com have not responded to Cointelegraph's request for comment.

Some industry insiders welcome the changes in the industry landscape. Enzersdorfer-Konrad of Bitpanda pointed out that many platforms have been operating in Europe for "years" without adhering to the same regulatory requirements that their local exchanges "have implemented since their inception."

With the entry of large exchanges under MiCA regulation, "they must also meet the same standards—this is a necessary shift."

Despite the increasing number of large exchanges entering Europe, overall, the cryptocurrency adoption rate in Europe remains relatively low compared to other regions globally. EU member states generally have regulated electronic payment methods and relatively stable currencies, contrasting sharply with other countries.

As MiCA brings more crypto businesses into Europe, how will more exchanges carve out a share in this slowly growing market?

Enzersdorfer-Konrad stated that cryptocurrency adoption in Europe is more focused on "trust and regulation rather than speed," emphasizing long-term development. He noted that with clear regulations fully implemented, "we believe demand and confidence will continue to grow."

This increase in trust is expected to further drive up cryptocurrency adoption rates in the EU. If institutions believe that crypto assets are safer under traditional protections, they will be more willing to participate. Enzersdorfer-Konrad stated:

With active institutional participation, the European market is expected to expand. However, with large new entrants like OKX and Coinbase joining, along with smaller players accelerating consolidation, Europe may face a market competition battle.

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Original article: “As Cryptocurrency Exchanges Compete for the European Market, Competition Intensifies”

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