Binance halts services in France and other European countries after MiCA failure

Binance withdraws from France and several other European countries after the crypto exchange failed to obtain a MiCA licence before the 1 July deadline. More than 2 million French users can no longer trade on the platform and are limited to only withdrawing their funds. Reports BFM Business.

No MiCA Licence, No Trading

Binance has announced that as of 1 July it no longer holds the required licence under the European MiCA regulation (Markets in Crypto Assets) to continue operating in several European countries. As a result, users in those countries, including France, can no longer trade spot or margin products. A few days before the deadline, Binance sent an email to its clients with instructions on what they can do.

In France, Binance says it serves around 2 million users. That is a sizeable number to suddenly deny access to trading services. The company states that user funds are safe and that withdrawals remain possible. Still, the impact is significant: a complete trading freeze in one of Europe’s largest economies is no small matter.

Billions in Outflows Visible on the Blockchain

In addition to losing clients in Europe, on-chain data also shows a substantial outflow. According to figures cited by BFM Business, approximately $1.6 billion in crypto has flowed out of Binance on a net basis over the past month. Yet the exchange still manages around $114 billion in crypto assets, demonstrating that despite the setback it remains a dominant player in the market.

The situation around MiCA shows how seriously Europe is taking crypto regulation. Exchanges that fail to comply with the rules in time risk being shut out of the entire European market. Whether Binance will still apply for a MiCA licence and resume its services in the affected countries in the future remains unclear for now.