Binance will cease providing services to customers in the EU due to the lack of a MiCA licence
Binance, the world’s largest cryptocurrency exchange, will cease providing services to customers in European Union countries from 1 July due to its lack of a licence to operate under the Markets in Crypto-Assets Regulation.
From 1 July, all cryptocurrency companies operating in the EU must hold the relevant licence under the MiCA regulation. Failure to do so will result in sanctions.
Binance’s application for a pan-European licence in Greece was rejected last week. According to sources, the company now plans to submit a new application via France, where it has previously held licensing negotiations.
Even if the new licence is approved, this is likely to happen after the 1 July deadline. Until then, the exchange will be unable to serve customers in the European Union.
Binance customers in Poland, Italy, Spain and France have already received emails with instructions on how to withdraw funds. The messages state that the company will not obtain a MiCA licence until 30 June 2026.
Binance stated that it had not received an official decision regarding its Greek application, so it had decided to withdraw it and continue the authorisation process in another EU country.
The company emphasised that Europe remains an important market for the exchange and expressed confidence that it would obtain a MiCA licence within the coming months.
Binance also assured users that their funds remain secure and that not all customers will be affected by the changes before 1 July.
The difficulties in obtaining authorisation have dealt another blow to Binance, which in recent years has been striving to strengthen its compliance with regulatory requirements following a series of legal cases and fines in various countries.
In 2023, the company pleaded guilty to criminal charges relating to money laundering and breaches of international financial sanctions. Binance agreed to pay over $4.3 billion in fines to the US authorities.
The exchange’s founder, Changpeng Zhao, stepped down as CEO, pleaded guilty to a criminal charge, spent four months in a US prison and was subsequently pardoned by US President Donald Trump.
According to sources, during negotiations with the Greek authorities, Binance promised to open an office in the country, hire a significant number of staff and invest billions of euros in the local economy.
However, the application was ultimately rejected due to concerns over anti-money laundering controls, as well as questions regarding Changpeng Zhao’s compliance with regulatory requirements.
Following Binance’s exit from the European market, competitors are already trying to capitalise on the situation. Bitpanda founder Eric Demuth and OKX founder Star Xu have publicly urged traders to consider their platforms.
