Binance has failed to obtain a license under the bloc’s new framework regulating the industry
Binance has announced plans to temporarily suspend services to its customers in the European Union starting next week. The crypto exchange, which is the world’s largest by trading volume, has so far failed to secure authorization under the bloc’s new licensing regime.
All crypto-asset service providers are obliged to get a license under the Markets in Crypto-Assets Regulation, known as MiCA, by July 1, or risk penalties. Adopted in 2023 and rolled out in stages from 2024, the legal framework aims to reduce the risks of market abuse and financial crime, protect consumers and investors, strengthen oversight of the sector, and replace fragmented national regulations with a single set of rules.
The move comes after years of regulatory scrutiny of Binance. French authorities are continuing an investigation into the exchange, while co-founder and former Chief Executive Changpeng Zhao pleaded guilty in the United States in 2023 to anti-money-laundering violations and served a four-month prison sentence the following year.
Binance withdrew its MiCA license application in Greece on Wednesday and said it would apply in another EU country. However, any new application is unlikely to be approved before July 1. The exchange will not be able to serve European customers until it receives the necessary license.
The Financial Times reported on Friday that customers in Poland, Italy, Spain, and France, where Binance currently operates under local licenses, had received emails earlier this week explaining how they could withdraw their assets due to the halt of operations.
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