Choosing a licensed exchange

Before you open an account with an exchange, you hand it your money and your documents. So choosing an exchange is not about who has the nicer app or the bigger sign-up bonus. It is like choosing a bank – and you do not choose a bank by the ad at the bus stop either.

The MiCA licence#

Since the end of 2024 the European Union has applied the regulation on markets in crypto-assets, MiCA for short. Whoever wants to offer people in the EU buying, selling or storing crypto needs authorisation from a supervisor – in the Czech Republic from the Czech National Bank, elsewhere from that country's regulator. Firms that operated before had a transitional period. It ended on 1 July 2026. Since then only licensed firms may offer these services to people in the EU.

An example: Binance#

One of the biggest exchanges in the world, Binance, did not get a MiCA licence. That is why, since 1 July 2026, it has not accepted new sign-ups or deposits from people in the EU and does not let them place new orders. Withdrawals stayed open so customers can move their money elsewhere.

The lesson for you is simple: neither size nor a famous name replaces a licence. Guides on the internet that start with "sign up at …" can be useless half a year later.

How to check a licence#

1. The national register – your country's regulator (in the Czech Republic, the Czech National Bank) publishes a list of firms authorised to provide crypto-asset services.
2. The ESMA register – the European Securities and Markets Authority keeps a joint register of all MiCA-licensed firms in the EU. A licence from another EU country is valid in yours too.
3. Compare the exact name of the firm. An exchange often runs several companies in different countries. Check that the one you sign a contract with is the one holding the licence – you will find it in the terms and conditions.

It takes a few minutes and saves you a lot of trouble.

What to look at besides the licence#

• Deposits and withdrawals in euros – does it support SEPA bank transfers, or only cards?
• Fees – for trades, deposits and withdrawals. More in lessons 4 and 8.
• The cryptocurrencies you want – and the networks you can withdraw them over.
• Withdrawals to your own wallet – an exchange that does not let you withdraw crypto is not an exchange but a cage.
• Your language and customer support – handy when something goes wrong.
• History – has the exchange had data leaks or frozen withdrawals? How did it handle them?

Common myths#

• "It is the biggest exchange in the world, it must be fine." Binance showed that size does not replace a licence.
• "They have an app in the App Store, so they are legal." App stores do not check licences.
• "Their licence is from Lithuania, it does not count here." A MiCA licence from one EU country is valid throughout the EU.