MEXC Refers French Clients to Kraken Amid Regulatory Exit
MEXC initiates a phased withdrawal from France, directing users to Kraken for services.
1Phased Exit Strategy
MEXC is gradually ceasing operations for French users to ensure regulatory alignment. The exchange has categorized affected customers into four distinct groups, with the wind-down process starting on November 18, 2026. This structured approach aims to manage the transition of users out of the platform before the final service termination date.
2Referral to Kraken
Eligible French customers are being referred to Kraken, mirroring a previous arrangement used in the Netherlands. This transition is not automatic; users must manually open new accounts, complete mandatory KYC identity verification procedures, and transfer their digital assets independently. Kraken operates in France via Payward Europe Solutions Limited, which holds necessary authorizations.
3Account Restriction Timeline
Once an account enters the wind-down phase, users are prohibited from opening new positions or making spot purchases. Deposits are also disabled during this period. Customers retain the ability to reduce or close existing positions, repay liabilities, and withdraw assets until the final deadline. Automatic position closures occur on January 22, 2027.
4Final Withdrawal Deadlines
All affected accounts will transition to a withdrawal-only status by January 25, 2027. The final window for users to remove their assets from the MEXC platform closes strictly at 00:00 on March 5, 2027. After this specific time, the exchange will no longer facilitate any user-initiated withdrawals for the French market.
5Regulatory Pressure Context
The decision follows significant regulatory scrutiny from French authorities. On June 4, 2024, the AMF added the MEXC website to its blacklist. The following day, the regulator issued a public warning regarding platforms offering digital-asset services without proper authorization. This move aligns with broader European efforts to enforce strict compliance standards.
6Handling Residual Assets
MEXC has stated that any assets remaining after the final withdrawal deadline will be transferred to a regulated custodian. However, the company has not yet identified the specific custodian or provided details on how customers can reclaim these holdings later. This lack of clarity remains a critical point for affected users.
7Precedent in Netherlands
This French withdrawal follows a similar exit strategy previously executed in the Netherlands. In that instance, MEXC recommended regulated alternatives like Kraken and Bybit EU to its users. Unlike the French referral process, the Dutch arrangement involved Kraken acting as a custodian for assets left behind, though account migration was not supported.
8Market Impact Analysis
The exit highlights the increasing difficulty for non-compliant crypto exchanges to operate within the European Union under the MiCA framework. By prioritizing regulatory alignment, MEXC is attempting to mitigate legal risks. Users are now forced to navigate the transition to authorized platforms, reflecting a shift toward centralized, regulated digital asset trading.