MiCA Restrictions Prompt Coinbase and OKX to Poach Binance Users

Crypto exchanges Coinbase and OKX are making a play for users affected by MiCA restrictions in the EU. With the Markets in Crypto-Assets framework set to take effect on July 1, these exchanges are offering incentives to transfer funds from companies that failed to gain license approval.

Binance, the world's largest crypto exchange, will restrict services for EU-based users after withdrawing its MiCA application last week. Bybit Global will also limit access to services for EEA users starting on July 1, though its Bybit EU arm is authorized to operate under MiCA through its Austrian licensee.

Cryptocurrency exchanges like Coinbase and OKX are offering incentives to transfer funds from companies that failed to gain license approval. For example, Coinbase CEO Brian Armstrong said the company would offer a 5% transfer bonus for users before July 13, about two weeks after MiCA takes effect. Meanwhile, Kraken offered a $1.1 million prize draw for euro deposits.

Erald Ghoos, CEO of OKX Europe, even suggested that Binance and Bybit users transfer their funds by offering 8% on new deposits. 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.