The Dutch cryptocurrency exchange Knaken has been declared bankrupt by a court following its failure to obtain a mandatory license under the European Union’s MiCA regulatory framework.

Key Points

• The Rotterdam-based exchange collapsed after failing to meet the Netherlands' strict June 30, 2025, deadline for MiCA compliance.
• Dutch prosecutors estimate that approximately €7 million in customer funds is missing from the platform.
• The bankruptcy affects roughly 30,000 users who currently have no guaranteed access to their assets.
• The Dutch financial crime agency, FIOD, raided the company’s offices on June 29 to seize assets and evidence.
• An independent trustee has been appointed to manage the liquidation process and attempt to recover remaining funds.
• The company is entirely unaffiliated with the global cryptocurrency exchange Kraken.

Why it Matters

This collapse highlights the significant risks for retail investors when crypto platforms fail to adhere to new European regulatory standards. Because crypto assets lack the deposit protections afforded to traditional bank accounts, users face a difficult and uncertain recovery process for their missing funds.