Knaken Offline: Feyenoord Sponsor Stops Crypto Trading Due to MiCA Rules

The Rotterdam-based crypto platform Knaken has suddenly gone offline, leaving thousands of customers in the dark about their digital assets. The company, which has been operational since 2021 and served as a sponsor of football club Feyenoord, took its trading app and customer portal offline without warning (https://www.telegraaf.nl/financieel/feyenoord-sponsor-knaken-plots-uit-de-lucht-klanten-in-grote-onzekerheid-over-cryptotegoeden/154753833.html).

Customers are currently unable to log in and have no direct access to their balances. Knaken states that it was unable to comply with new European regulations.

MiCAR licence causes closure

The Dutch crypto trader could not obtain the required MiCAR licence. MiCAR is the first uniform European legislation for crypto services and is designed to better protect consumers from scams and fraud. The regulatory framework makes crypto trading more transparent and reliable within the European Union. Knaken says this is the reason for ceasing all its business activities.

For the time being, customers can only submit questions via email to support@knaken.eu. The company promises that all incoming questions will be answered by mid-June via an update on the website. The Netherlands Authority for the Financial Markets (AFM) advises consumers to always check for the correct licences. The crypto register lists all providers that have obtained a valid licence.

Companies such as Bitvavo and Bybit do hold the appropriate licences.

Crypto market under pressure

The incident with Knaken follows a difficult period for the cryptocurrency market. Bitcoin has been under constant pressure since mid-May. The leading digital coin continues to slide and is currently trading around $67,176, a loss of more than 5.7% in 24 hours. This aligns with earlier warnings that Bitcoin dips below 70,000 as hundreds of millions in crypto positions vanish.

For active crypto investors, there is currently little enjoyment in the market. Over the past weeks, investors have faced persistent falling prices and volatility. Knaken was also briefly a partner of Ajax and had earlier collaborations with football club Sparta. This shows how deeply the crypto industry was embedded in the sports world.