According to the Financial Times, Binance has announced it will stop providing services to customers in the European Union starting next week. The reason is the company’s failure to obtain a license under the new EU cryptocurrency regulation, known as MiCA.
MiCA, which stands for Markets in Crypto-Assets, will come into full effect on July 1st. From that date, all crypto companies operating within the European Union must hold a valid MiCA license or risk facing penalties.
Binance had applied for a license through Greece. That application was rejected last week. Sources indicate the company is now planning to try again via France instead.
Users in Multiple Countries Affected
This week, withdrawal instructions were reportedly sent to Binance users in Poland, Italy, Spain, and France. While some users might be affected before the July 1st deadline, Binance has stated that customers are not required to withdraw their funds immediately. The exchange insists that client assets remain secure.
Binance co-CEO Yi He offered a public response in the wake of the news. She stated that Europe is still an important market for the company. Binance remains committed to the region, she added.
Building Trust Takes Time
Yi He acknowledged that building trust with regulators is a slow process. She said Binance will continue working closely with both EU institutions and national authorities to meet compliance standards.
The Binance executive also shared a somewhat controversial view. She argued that crypto service providers, including Binance, could eventually become more important gatekeepers in the financial system than traditional banks. This, she said, would be driven by the underlying technology and growing market adoption.
Whether that prediction holds true or not is something only time will tell. For now, the company faces a practical and immediate challenge: figuring out how to legally serve European customers after July 1st.
*This is not investment advice.
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