The debate over Binance’s future in Europe has grown in recent days. The reason is that the world’s largest cryptocurrency exchange has informed customers that it is restricting some of its services in the European Union. The exchange has failed to secure a Markets in Crypto-Assets (MiCA) license, which it was expected to have by July 1.
In an email sent to users last week, the company said it would no longer be able to accept new registrations and would restrict some services. According to CoinDesk, a Binance spokesperson said user assets remain safe and accessible at all times.
Where did the process begin?: Withdrawal from Greece, shift toward France
Last week, Binance announced that it had withdrawn its application for an EU-wide license through Greek authorities. The company said it would instead seek authorization in another EU member state.
According to the Financial Times, Binance’s application in Greece was rejected, after which the exchange said it planned to turn to France. However, according to people familiar with the matter cited in the report, any potential approval is likely to come well after the July 1 deadline. In other words, as things stand, Binance is set to remain without a license in the EU for a period of time.
In a statement to CNBC, Binance said it would “take the necessary steps to meet the applicable requirements before July 1.” While the company acknowledged that some users could be affected by the process, it said it would remain in contact with them to provide clarity on the next steps and expressed confidence that it would obtain the license in the coming months.
MiCA is the EU’s crypto asset regulation. Under the rules, crypto companies must obtain a MiCA license from at least one member state in order to provide services across all 27 EU countries. Companies that fail to secure a license by July 1 are expected to wind down their activities in the EU.
This transition period marks the final phase of MiCA’s gradual implementation. The EU designed the regulation to create a framework in which crypto markets operate under a single set of rules. So far, several major exchanges have managed to obtain licenses from different member states. Binance, however, appears to have hit an obstacle in this process.
What happened to users in France, Italy, Poland and Spain?
According to the FT report, Binance sent emails last week to customers in France, Italy, Poland and Spain, where it holds local licenses, explaining how they could withdraw their funds from the exchange.
Competitors did not stay idle
Binance’s step back has given rival exchanges with EU licenses an opportunity to promote their own services. Bitpanda founder Eric Demuth said in a post on X that they prioritize trust over speed. He added that while Europe’s regulatory approach may be open to debate, the region places importance on consumer protection, and that his company was built with this in mind from the beginning. He also invited those who have not yet tried Bitpanda to do so.
OKX founder Star Xu made a similar post on X, highlighting his company’s trusted crypto and fintech services.
Investigations in Binance’s past
Binance has faced numerous investigations and criminal complaints in recent years. The exchange has been banned in the United Kingdom since 2021.
In 2023, Binance pleaded guilty to charges related to money laundering and violations of international financial sanctions, and paid more than $4.3 billion in penalties to U.S. authorities.
Last year, French authorities launched a judicial investigation into Binance over allegations that the company may have aided money laundering. Binance denied the allegations.
This history also helps explain why competitors in the EU were quick to seize this opportunity. Binance’s delay in the MiCA process is not separate from years of regulatory issues; rather, it coincides with the exchange’s broader effort to rebuild its reputation in Europe.
Binance was founded in 2017 by Changpeng Zhao. Zhao was sentenced to prison in 2024 over anti-money laundering violations and was pardoned in 2025 by U.S. President Donald Trump.
