The world’s largest crypto exchange, Binance, has informed its customers in the European Union that it will be forced to suspend services starting next week. The reason was the company’s failure to obtain the necessary license to operate in the region. What Binance has to say about this
The world’s largest crypto exchange, Binance, has informed its customers in the European Union that it will be forced to suspend services starting next week. The reason was the company’s failure to obtain the necessary license to operate in the region. What Binance has to say about this
This was reported by the Financial Times, citing its own sources and the platform’s official correspondence with users.
From July 1st, all crypto service providers within the EU will be required to be licensed under the Markets in Crypto-Assets Regulation (MiCA). Any activity without this authorization will be subject to severe regulatory sanctions.
Two weeks before the deadline, the Greek financial regulator rejected Binance’s application for a pan-European license. The company is now trying to urgently apply through France, but even if it is approved, the process will take months. During this time, the exchange will not have the legal right to serve Europeans.
Crypto exchange customers in Italy, Spain, France, and Poland have already started receiving emails urging them to withdraw their funds because the company «will not receive a MiCA license by June 30, 2026.» At the same time, Binance officials are trying to calm the market.
«Some users may feel the effects before July 1, and we are communicating directly with those affected — we are not encouraging users to withdraw their funds before July 1. User assets remain safe,» the company said, adding that Europe remains a key market for them.
The Greek Capital Markets Commission declined to comment, but reporters learned that Athens rejected Binance’s request due to concerns about the transparency of its anti-money laundering controls. Regulators also raised concerns about whether the exchange’s former CEO, Changpeng Zhao, was compliant with internal standards. This came despite the company’s promises to open a large office in Greece, hire local staff and invest billions of euros in the country.
Binance’s competitors have already taken advantage of the situation to lure European traders to their platforms. Eric Demuth, founder of the Austrian exchange Bitpanda, wrote on Twitter: «You can love the European approach to regulation or not, but the reality is that the EU values rules and consumer protection.» OKX founder Star Xu also said he was ready to accept European clients.
The company commented on the Bloomberg article and stated that Binance remains committed to Europe and our European users.
«We do not comment on ongoing interactions with regulators or internal discussions regarding specific jurisdictions, other than what we announce publicly. Our focus remains on obtaining MiCA authorization in the EU, and we strive to operate within a fair, predictable and truly harmonized European regulatory framework. As previously reported, following the withdrawal of our MiCA application in Greece, we are working to obtain authorization in another EU member state,» the crypto exchange said in a statement.
Binance assured that users' assets remain safe, and if regulatory changes may affect them, they will receive a warning and instructions on further steps for their accounts.
This is not Binance’s first run-in with the law. In 2023, the company pleaded guilty to violating US anti-money laundering and sanctions laws (particularly against the Russian Federation), agreeing to pay the US government a record $4.3 billion fine.
The company’s founder, Changpeng Zhao, then resigned, pleaded guilty, and spent four months in a US prison, from which he was later released thanks to a pardon from Donald Trump. In addition, Binance’s activities have been officially banned in the UK since 2021, and a judicial investigation is underway in France regarding the company’s possible assistance in laundering money from the drug trade.
