Binance faces EU service suspension as MiCA license deadline lapses

Binance is confronting a potential shutdown of its services across the European Union after failing to secure a license under the bloc's Markets in Crypto-Assets (MiCA) regulatory framework, a development that has already triggered user withdrawals in several member states. The June 30 cutoff marks the end of the EU's transition period for crypto asset service providers, and without approval from an EU member state, the exchange must wind down operations in the region in an orderly manner. Already, customers in Poland, Italy, Spain, and France have received emails with withdrawal instructions, though Binance insists it has not set a full withdrawal deadline for July 1. The company assured users that their assets remain safe and accessible, yet the uncertainty leaves many awaiting further instructions as some services may be halted before the deadline.

Binance MiCA license path stalls before deadline

Binance had applied in Greece for a license that could allow it to serve clients across the EU. However, according to a Cryptopolitan report, the application was rejected last week. The exchange claimed that it did not receive a formal decision from Greek authorities.

After its Greek licensing route stalled ahead of the deadline, the exchange shifted its focus to another EU member state. The Financial Times reported that Binance now intends to seek authorization in France as it works to restore access to the European market.

This follows a previous report in which Reuters noted that Binance’s head of Europe and the United Kingdom, Gillian Lynch, declared that the company remained committed to Europe. She noted that Binance had filed a formal application only in Greece, adding that the company was reviewing other options if approval did not arrive.

However, despite of this, ESMA had warned that crypto asset service providers without authorization must take immediate steps to wind down EU activities. It also advised users to check whether their provider appears on official authorization lists.

Rivals move ahead as Binance seeks new route

Binance’s delay comes as competitors advance with regulated access in Europe. Coinbase launched its MiCA office in Luxembourg ahead of the deadline. Other companies such as OKX, Bitpanda, and Crypto.com have also made efforts to obtain EU licenses.

The gap may give licensed competitors in the area a more advantageous market position. The new framework will allow approved companies to continue serving users. In the meantime, Binance may be subject to restrictions until another application is successful.

The overall record of the exchange remains under review. Binance paid over $4.3 billion to U.S. authorities in 2023 after pleading guilty to related violations of money laundering controls and sanctions. This led to the step down of Founder Changpeng Zhao as chief executive and later served a four-month prison sentence.

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