MiCA is in full force, but the European Securities and Markets Authority (ESMA) and national regulators warn that cryptoasset service providers operating without authorization must obtain licenses or close as transition periods expire in 2026.
Under MiCA, licensed exchanges face capital, asset segregation, disclosure and governance requirements that materially increase the cost of doing business.
To learn more, crypto.news spoke with KuCoin CEO BC Wong immediately following KuCoin’s recent press conference in Vienna as well as its EU VIP Gala on January 28.
CN: How does KuCoin see the competitive dynamics in Europe over the next 18 to 24 months? Do you expect stricter enforcement to accelerate consolidation in favor of MiCA-licensed venues like KuCoin EU?
Wong: As transition periods expire and supervisory expectations become more explicit towards 2026, the European market is entering a phase where regulatory compliance is a basic requirement rather than a differentiator. MiCA sets a high standard for governance, operational resilience and consumer protection, and it is reasonable to expect that not all participants will choose to operate under that framework.
Over the next 18 to 24 months, we anticipate a gradual market normalization, with users and institutional partners increasingly prioritizing regulated and transparent spaces created for long-term participation in the European financial system. KuCoin EU was designed with this environment in mind from the beginning, with compliance and sustainability built into its operating model rather than introduced in reaction to law enforcement.
CN: How does KuCoin balance MiCA-driven compliance overheads with maintaining strong liquidity, competitive rates and product breadth against unregulated or offshore competitors still serving EU users?
Wong: MiCA certainly increases the cost of operating in Europe, but we view compliance as a strategic investment, not a limitation. Balance comes from operational scale and disciplined execution, not lower standards.
KuCoin EU benefits from shared technology, liquidity infrastructure and institutional partnerships across the broader KuCoin ecosystem, while meeting regulatory requirements. Over time, we believe that confidence and regulatory clarity will outweigh the short-term cost advantages offered by unregulated alternatives.
Implementation, market structure.
Separately, crypto.news asked KuCoin’s Christian Niedermueller about how Austria has positioned itself as an early and relatively fast-moving MiCA jurisdiction and about KuCoin’s decision to make Vienna its European hub.
CN: From a market structure perspective, how important is it for Vienna to become a liquidity and compliance center for cryptocurrencies in the EU, rather than activity being fragmented into multiple smaller MiCA centres?
Niedermüller: The importance of Vienna lies in demonstrating that MiCA can be implemented efficiently, predictably and at scale. A strong center helps anchor supervisory dialogue, compliance expertise, and operational confidence, which in turn supports liquidity formation.
This does not mean centralizing all activity in one city, but rather avoiding excessive fragmentation that could weaken market depth and coherence. Well-functioning hubs like Vienna help reinforce the ambition of an EU single market under MiCA rather than undermine it.
Brand Partnership/Sports Segment
CN: You are revealing a long-term partnership with a world-class professional cyclist at the same time as KuCoin emphasizes MiCA compliance and the ‘Trust in Motion’ in Europe. What concrete compliance and consumer protection messages are you incorporating into this sports partnership so that it goes beyond brand visibility and truly boosts user trust with EU regulators and first-time retail investors?
TO: The partnership is based on shared values, discipline, responsibility and long-term commitment, rather than short-term promotion. “Trust in Motion” reflects how KuCoin EU operates under MiCA: transparent rules, regulatory oversight and clear consumer protections.
We are integrating educational and responsible investment messages into the partnership, focusing on raising awareness of the risks and importance of using regulated platforms. This ensures that collaboration supports trust with users and regulators, not just brand recognition.
Q: Some MiCA-compliant exchanges explicitly use license status in their marketing narrative to differentiate themselves from unregulated competitors. Will KuCoin’s new EU-targeted campaigns and influencer content clearly highlight the MiCA license and associated investor protections, and how to avoid crossing the line into overly promotional messaging in a highly regulated environment?
TO: Yes, but carefully and with facts. We will clearly say that KuCoin EU is MiCA licensed and explain what that means in practical terms, such as asset segregation, governance standards and disclosure obligations.
We are intentionally avoiding exaggerated or comparative claims. The goal is to inform, not persuade, which aligns with both regulatory expectations and our long-term approach to building credibility in Europe.
For the product and market roadmap
Q: The final phases of MiCA, especially around tokenized securities and RWA, are expected to be fully operational by mid-2026, and ESMA pilots are already underway. How is KuCoin EU preparing its listing, custody and market-making infrastructure for tokenized bonds, real estate or other RWA? Do you intend to compete directly with traditional exchanges in that segment or focus on native crypto assets first?
TO: Our approach is incremental and regulation-based. In the near term, our focus remains on strengthening the infrastructure for core cryptoassets under MiCA, while closely monitoring the ESMA pilots and emerging guidelines on tokenized securities and RWA.
At the infrastructure level, we are investing in custody, compliance workflows and market-making frameworks that could support RWAs once regulatory conditions are fully defined. Our strategic move will depend on regulatory clarity and customer demand, but we will prioritize responsible entry over speed.
Q: Several EU jurisdictions, including Spain and others, are imposing stricter licensing and transaction reporting regimes based on MiCA from 2026, with warnings that platforms that do not comply with the rules will be kicked out of the market. Which EU markets do you see as most strategically important for KuCoin EU in this new law enforcement landscape, and what concrete KPIs (user growth, volumes, institutional onboarding) are you using to measure success over the next two years?
TO: As the application of MiCA becomes more consistent across member states from 2026, strategic importance is increasingly defined by market depth, regulatory maturity and the strength of supervisory frameworks, rather than just short-term growth potential.
Over the next two years, success will be assessed through indicators of sustainable market participation: consistent and consistent user growth, quality and resilience of trading volumes, institutional commitment and constructive regulatory outcomes. In this environment, the best way to measure performance is not by temporary spikes in activity, but by whether a platform gains the long-term trust of regulators, institutional partners, and retail users alike.
