OKX Europe CEO Mark Ghoos has stated that approximately 80% of crypto exchanges operating in the EU will not achieve MiCA compliance before ESMA's July 1 deadline requiring unlicensed firms to cease operations. This follows ESMA's enforcement stance that firms without a CASp license must halt EU client activity. The consolidation is expected to be rapid and could leave significant market structure gaps in European crypto markets.
For Armada's crypto-repo desk, any EU-based market maker, hedge fund, or exchange counterparty that loses MiCA authorization after July 1 would face legal constraints on transacting in crypto instruments, potentially voiding or complicating existing repo agreements governed under GMRA or bespoke crypto master agreements. The desk should immediately verify that all active and pipeline EU counterparties hold or are on track for MiCA licensing before executing new repo facilities.