MiCA is fully in force, but the European Securities and Markets Authority (ESMA) and national regulators are warning that crypto asset service providers operating without authorization must either secure licenses or wind down as transitional periods expire into 2026.
Under MiCA, licensed exchanges face capital, asset segregation, disclosure, and governance requirements that materially raise the cost of doing business.
To learn more, crypto.news spoke with KuCoin CEO BC Wong on the heels of KuCoin’s recent press conference in Vienna, as well as its EU VIP Gala on Jan. 28.
CN: How does KuCoin view competitive dynamics in Europe over the next 18–24 months, and do you expect stricter enforcement to accelerate consolidation in favor of MiCA-licensed venues like KuCoin EU?
Wong: As transitional periods expire and supervisory expectations become more explicit into 2026, the European market is moving into a phase where regulatory compliance is a baseline requirement rather than a differentiator. MiCA establishes a high standard for governance, operational resilience, and consumer protection, and it is reasonable to expect that not every participant will choose to operate under that framework.
Over the next 18–24 months, we anticipate a gradual normalization of the market, with users and institutional partners increasingly prioritizing regulated, transparent venues that are built 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 embedded into its operating model rather than introduced in reaction to enforcement.
CN: How is KuCoin balancing MiCA-driven compliance overhead with maintaining deep liquidity, competitive fees, and product breadth versus unregulated or offshore competitors still serving EU users?
Wong: MiCA unquestionably raises the cost of operating in Europe, but we view compliance as a strategic investment, not a constraint. The balance comes from operational scale and disciplined execution, not from lowering standards.
KuCoin EU benefits from shared technology, liquidity infrastructure, and institutional partnerships across the broader KuCoin ecosystem, while compliant with regulatory requirements. Over time, we believe trust and regulatory clarity will outweigh 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, 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 that Vienna becomes a liquidity and compliance hub for crypto in the EU, rather than activity fragmenting across multiple smaller MiCA centers?
Niedermueller: Vienna’s importance lies in demonstrating that MiCA can be implemented efficiently, predictably, and at scale. A strong hub 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 consistency. Well-functioning hubs like Vienna help reinforce the EU’s single-market ambition under MiCA rather than undermining it.
Brand/sports partnership segment
CN: You’re unveiling a long-term partnership with a world-class professional cyclist at the same moment KuCoin is emphasizing MiCA compliance and ‘Trust in Motion’ in Europe. What concrete compliance and consumer-protection messages are you building into this sports partnership so that it goes beyond brand visibility and actually moves the needle on user trust with EU regulators and first-time retail investors?
A: The partnership is built around shared values, discipline, accountability, 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-investing messages into the partnership, focusing on risk awareness and the importance of using regulated platforms. This ensures the collaboration supports trust with users and regulators, not just brand recognition.
Q: Some MiCA-compliant exchanges are explicitly using licensing status in their marketing narrative to differentiate from unregulated competitors. Will KuCoin’s new EU-facing campaigns and influencer content clearly highlight the MiCA license and associated investor protections, and how do you avoid crossing the line into overly promotional messaging in a highly regulated environment?
A: Yes, but carefully and factually. We will clearly state 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 product and market roadmap
Q: MiCA’s later phases, especially around tokenized securities and RWAs, are expected to be fully operational by mid-2026, with ESMA pilots already underway. How is KuCoin EU preparing its listing, custody, and market-making infrastructure for tokenized bonds, real estate, or other RWAs, and do you intend to compete directly with traditional exchanges in that segment, or focus on native crypto assets first?
A: Our approach is incremental and regulation-led. In the near term, our focus remains on strengthening infrastructure for core crypto assets under MiCA, while closely monitoring ESMA pilots and emerging guidance on tokenized securities and RWAs.
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 movement will depend on regulatory clarity and client demand, but we will prioritize responsible entry over speed.
Q: Several EU jurisdictions, including Spain and others, are now locking in stricter MiCA-based licensing and transaction-reporting regimes from 2026 onwards, with warnings that non-compliant platforms will be pushed out of the market. Which EU markets do you see as the most strategically important for KuCoin EU under this new enforcement landscape, and what concrete KPIs—user growth, volumes, institutional onboarding—are you using to measure success over the next two years?
A: As MiCA enforcement becomes more consistent across member states from 2026 onwards, strategic importance is increasingly defined by market depth, regulatory maturity, and the strength of supervisory frameworks, rather than by short-term growth potential alone.
Over the next two years, success will be assessed through indicators of sustainable market participation: steady and compliant user growth, the quality and resilience of trading volumes, institutional engagement, and constructive regulatory outcomes. In this environment, performance is best measured not by temporary activity spikes, but by whether a platform earns long-term confidence from regulators, institutional partners, and retail users alike.
