Binance will not be able to operate in the EU starting next week: the crypto exchange has warned clients in the European Union that it is temporarily suspending service because it will not be able to obtain a license under MiCA rules by the deadline.
What Will Change on July 1
Starting July 1, all companies working with crypto assets in the European Union must have authorization under the regulation of crypto asset markets. Without such a license, businesses face fines, and servicing clients in the region becomes impossible.
MiCA (Markets in Crypto-Assets Regulation) introduces unified rules for cryptocurrency operators in the EU: they need to obtain authorization, operate more transparently, and comply with regulators’ requirements. For Binance and other major platforms, this means that previous local permits are no longer sufficient for full operation throughout the region.
This is a serious blow for Binance: the world’s largest online digital currency exchange service had hoped to maintain a full presence in the EU, but the regulatory deadline came too soon.
Why Binance Did Not Manage To Get Authorization
Binance’s application in Greece for a pan-European license was rejected last week, less than two weeks before the new requirements take effect. The procedure involved HCMC, the Greek financial market regulator.
After the Greek regulator’s refusal, Binance was left with almost no time for a new route. The process was complicated by previous regulatory claims against the company and the need to go through the procedure again in another jurisdiction.
Now the exchange intends to take another route and submit documents through France, where it had previously discussed the possibility of obtaining authorization. But even if the application is approved, the license will most likely appear noticeably later than the July 1 deadline. Until then, Binance will not be able to serve clients from the EU.
Clients Have Already Been Warned About Withdrawing Funds
Binance users in Poland, Italy, Spain, and France, where the company currently has local permits, received letters with instructions on withdrawing funds. For other EU countries, the risk is the same: without a pan-European license, servicing clients in the region is put on hold until a new authorization is obtained.
- Poland: clients received instructions on withdrawing funds; service depends on obtaining a MiCA license.
- Italy: users were sent notifications; the pause is stated as temporary.
- Spain: clients received letters with the same withdrawal instructions.
- France: Binance has a local permit, but a MiCA license is needed for further work in the EU.
The notifications state that the exchange will not receive a MiCA license before June 30, 2026. After service is suspended, EU users may lose access to Binance products and operations until the company obtains new authorization.
We are confident that we will obtain a MiCA license in the coming months.
This is how Binance explained its further plans to clients. However, until the new authorization is obtained, the company effectively loses the ability to continue working with users in the European Union.
Can You Use Binance Outside the EU
The restriction is specifically related to servicing clients in the European Union. If a user is outside the EU, access to Binance depends on the rules of the specific country, KYC data, and what geolocation restrictions the platform applies.
When moving or traveling, access may change: services may be unavailable in countries where Binance is banned or operates with restrictions. In such cases, the platform is guided by local regulation, account verification, and geoblocking.
Context: Regulatory Pressure on the Exchange Is Increasing
The licensing failure was painful for Binance, which in recent years has tried to show it is ready to play by the rules after fines and legal claims in various countries.
Among the main episodes of regulatory pressure on Binance:
- In 2023, the company pleaded guilty to criminal charges related to money laundering and violating international financial sanctions.
- Binance agreed to pay more than $4.3 billion in fines to U.S. authorities.
- Changpeng Zhao resigned as CEO of Binance.
- Changpeng Zhao pleaded guilty to a criminal charge and spent four months in an American prison.
- Later, Changpeng Zhao was pardoned by U.S. President Donald Trump.
The exchange has also faced problems in Europe. Last year, French authorities launched a judicial investigation into Binance, suspecting the platform may have facilitated money laundering, including funds related to illegal drug trafficking and tax evasion. Binance denied these allegations.
In the United Kingdom, the company’s operations have been banned since 2021. Against the backdrop of new MiCA requirements, the issue of a European license is becoming key for Binance: cryptocurrency remains a fast-growing market, but regulators are increasingly demanding transparency and rule compliance from major platforms.
