# MEXC Refers French Clients to Kraken Amid Regulatory Exit MEXC initiates a phased withdrawal from France, directing users to Kraken for services. - **Source:** [CryptoCurrency – Finance Magnates | Financial and business news](https://brifing.si/source/b5a2ce51-ec8e-4702-886b-778de5971605) - **Published:** 2026-11-06 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/8ac9de55-68d2-4fc8-afa9-dd4a7bd424c2 ## Phased 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. ## Referral 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. ## Account 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. ## Final 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. ## Regulatory 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. ## Handling 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. ## Precedent 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. ## Market 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. ## Sources covering this story - https://www.financemagnates.com/cryptocurrency/exchange/mexc-refers-french-clients-to-kraken-as-its-eu-retreat-widens/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._