Binance stops service to EU customers after rejection of MiCA licence

Binance is informing EU customers that it will cease providing services in the region from next week. The reason is a failed attempt to obtain a MiCA licence, a permit that will be mandatory from 1 July for all crypto companies wishing to operate within the European Union. The Financial Times reports this based on people familiar with the situation.

Read also: Coinbase receives MiCA licence and expands across Europe

More about Binance and BNB can be found on the Binance news page.

Application rejected in Greece

Last week, Greece rejected Binance’s licence application, less than two weeks before the deadline takes effect. Without a valid MiCA licence, a crypto company risks severe sanctions from European regulators. The time pressure is therefore immense, as the clock is ticking rapidly towards 1 July.

Binance is now switching to a new strategy and is filing an application via France, where it had previously been in discussions about a licence. Whether that application will be processed in time remains uncertain. In the meantime, customers in Poland, Italy, Spain and France are already receiving instructions on how to withdraw their funds.

Users do not need to take immediate action

Binance states that some users may already notice the effects of the cessation before 1 July. Nevertheless, the company is not calling on customers to withdraw their funds specifically before that date. Binance emphatically states that user funds are safe and that there is no reason for panic.

The situation stands in stark contrast to competitors who have managed to arrange MiCA compliance in time. For instance, Coinbase recently received a MiCA licence and is thus expanding into the entire European market. For Binance, the world’s largest crypto exchange, this is a significant setback at a time when European crypto regulation is being tightened further.