Binance, the world’s largest cryptocurrency exchange, has announced it will cease providing services to customers in the European Union starting next week after failing to secure a licence required under the bloc’s new Markets in Crypto-Assets Regulation (MiCA). The rule, which takes effect on July 1, mandates that all crypto firms operating in the EU obtain official authorisation or face penalties.
The company’s application for a pan-European licence, submitted via Greece, was withdrawn this week shortly before the regulation’s deadline. Binance stated it had not received a formal decision on the Greek application but chose to rescind it and instead intends to pursue licensing through France, where it has previously engaged in discussions. However, any potential French licence is expected to be granted well after July 1, meaning Binance will be unable to serve EU customers in the interim.
Customers in countries including Poland, Italy, Spain, and France, where Binance holds separate local licences, have been contacted with instructions on how to withdraw their funds, as the company indicated it will not be granted a MiCA licence by June 30, 2026. Binance emphasized that users are not being asked to withdraw their assets by the July 1 deadline and assured that client funds remain secure.
Binance framed Europe as a key market and confirmed its ongoing commitment to comply with MiCA, expressing confidence it will obtain a licence in an EU member state in the near future. Regulatory authorities in France and Greece declined to comment on the situation.
The setback follows a series of legal and regulatory challenges for Binance. In 2023, the exchange pleaded guilty to criminal charges involving money laundering and breaches of international financial sanctions in the United States, agreeing to pay over $4.3 billion in penalties. Its former chief executive, Changpeng Zhao, resigned, served four months in a US prison after pleading guilty to a criminal offence, and was later pardoned by then-President Donald Trump.
Efforts by Binance to secure approval in Greece reportedly included commitments to establish a local office, hire staff, and invest billions of euros in the country. Despite these efforts, concerns remained among regulators, particularly regarding the company’s anti-money laundering controls and whether Zhao met the necessary "fit and proper" criteria for leadership.
Binance stated that its application was complete and compliant, and that it continues to engage constructively with regulators based on its current governance and compliance frameworks. The company’s pause in EU operations represents a significant moment for the cryptocurrency industry as it adjusts to the region’s evolving regulatory landscape.