Dutch crypto exchange Knaken has collapsed. The court announced that it was invalidated for operating without a license under EU law for MiCA, its new crypto book. In June, customers were suddenly locked out of their accounts. Prosecutors say around $8 million, or €7 million, is missing.
In particular, the Knaken has no relation to the Kraken. Knaken is a Dutch crypto broker based in Rotterdam that entered bankruptcy.
Kraken is a unique US cryptocurrency international group that is still active. The two companies are independent despite having similar names.
Why did Knaken close?
Knaken allows people to buy, sell, and store crypto. But it did not get permission from the Dutch market regulator, AFM. The EU’s MiCA regulation, known as the Markets in Crypto-Assets regulation, made the license legal.
The Netherlands has implemented its own law MiCA license deadline the first, on June 30, 2025, one of the most mature in the bloc. Knaken never followed suit, and it went online in June 2026.
Dutch critics he asked court to declare the company bankrupt on June 30. They say payments have stopped and customers are at risk. Critics put Knaken’s customer base at around 30,000. The Dutch rulers were already pay OKX on MiCA breach in 2025.
Knaken said it shouldn’t interfere. They argued that the client’s money was already safe. The the court he did not agree with it. It appointed an independent trustee to oversee and restore its assets.
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Missing Money Tests MiCA Rules
Dutch law provides crypto protection only if the platform fails, AFM says. So companies use a legal entity, usually a foundation, to hold the client’s money. Knaken set up one, called Stichting Knaken Payments. But that shield only works if the money is actually there.
Under MiCA, the authorized company must keep the client’s money separation it is safe. Done right, the money stays away from the company’s creditors. The same problem struck recently The AscendEX exchange is falling.
Dutch financial investigators, the FIOD, raided Knaken on June 29 and seized the company’s computers and assets. No one has been arrested. Criminal proceedings are different from bankruptcy.
Customers also have limited security. Dutch compensation Schemes do not cover crypto, unlike bank deposits. Therefore the recovery depends on the trustee’s actions.
Payments can take months, and nothing is guaranteed. For many, it renews the old warning of own your crypto.
A note MiCA Rules Cause Dutch Crypto Exchanges to Fall appeared for the first time BeInCrypto.
