Binance to stop serving EU clients after missing MiCA licence deadline

Binance will stop providing services to clients in the European Union from next week after failing to secure a Markets in Crypto-Assets licence before the deadline, according to a Financial Times report. 

The July 1 cutoff marks the end of the bloc’s transition period for crypto asset service providers.

The report said Binance customers in Poland, Italy, Spain and France received emails telling them how to withdraw funds. Binance said some users may be affected before July 1. It also said it is not asking users to withdraw by that date and that user assets remain safe.

Binance withdraws Greek application

Binance had applied in Greece for a licence that would allow it to serve clients across the EU. The FT reported that the application was rejected last week. Binance said it did not receive a formal decision and took the decision to withdraw the Greek application.

In a company update, Binance said, “Your assets remain safe and secure, and will remain accessible at all times.” The exchange also said it will seek authorization in another EU member state. The FT reported that Binance now plans to apply through France.

As previously reported, Binance had already been seeking another EU approval pathway before the MiCA cutoff. The company said at the time that it remained committed to Europe and wanted to avoid disruption for users.

MiCA deadline closes in

MiCA creates a single crypto rulebook across the EU. From July 1, crypto firms need approval from a member state regulator to keep serving users across the bloc. The European Securities and Markets Authority has warned users that not all providers will be authorized after that date.

In its statement on the end of the MiCA transition period, ESMA said users should check whether their provider is listed as authorized. It also said firms without approval must stop offering services and manage any wind-down in an orderly way.

In a previous article, crypto.news explained what MiCA means for exchanges, stablecoins and EU users. The rulebook gives approved firms access to the full EU market, but it also raises the cost of compliance.

Rivals may benefit from setback

The setback comes as other exchanges move ahead with EU licences. Coinbase opened its Luxembourg MiCA hub before the deadline. Other firms, including OKX, Bitpanda and Crypto.com, have also worked to secure regulated access in Europe.

Binance’s wider record remains under review by regulators. The exchange paid more than $4.3b to U.S. authorities in 2023 after pleading guilty to charges tied to money laundering controls and sanctions breaches. Founder Changpeng Zhao stepped down as chief executive and later served a four-month prison sentence.

Previously, crypto.news discussed Binance’s reported Greek MiCA setback and the risk of losing EU access. In our last update, crypto.news examined Binance’s reported shift toward France after its Greek route stalled.

Binance said Europe remains important to its long-term plan. “We are confident we will secure a MiCA licence in the coming months,” it said. Until then, the exchange faces a gap in EU service access as the bloc’s new crypto regime takes full effect.