Binance Pulls MiCA Licence Bid And Tells European Users To Expect Disruptions
The world’s largest crypto exchange, Binance, which confirmed earlier this week that it had withdrawn its MiCA license application in Greece, told CNBC on Friday that some European users will see their services affected as a result. The July 1 deadline is days away, and the company still has no approved license anywhere in the EU.
Under the European Union’s landmark crypto regulatory framework, MiCA, every crypto asset business must obtain authorization from at least one EU member state by 1 July, or face penalties for continuing to operate within the bloc. Obtaining a license in one country grants access to all 27 member states.Β
Binance Promises A FixΒ
In its statement to CNBC on Friday, Binance said it “will take the necessary steps before 1 July to remain compliant with applicable requirements.”Β
The exchange acknowledged that some users may be impacted but said it would communicate directly with those customers to provide clear guidance on next steps. Binance added that it remains confident it will secure a license “in the coming months.”
According to social media reports, not all EU residents will have their accounts restricted after July 1. The restrictions appear to apply specifically to users in countries where Binance operates through a locally registered entity β France, Italy, Poland, Belgium, and Sweden are among those named.Β
Users in other EU countries are understood to be unaffected for now, at least based on current guidance from the exchange’s support team. However, the regulatory pressure is not easing.Β
No Extensions, No ExceptionsΒ
Spain’s market watchdog made its position clear on Friday, with chair Carlos San Basilio stating that his agency will grant no extensions or waivers to crypto firms that fail to secure MiCA licenses by the deadline β a comment made directly in response to questions about major platforms, including Binance, that remain unlicensed.Β
The statement leaves little room for interpretation and signals that Spanish authorities intend to enforce the rules as written, regardless of where individual firms are in their licensing process.
For Binance, the clock is now ticking on two fronts β securing a new license before regulators move to restrict its operations further, and managing the expectations of millions of European users who are only now beginning to understand what the July 1 deadline means for their accounts.
Binance’s native token BNB, the fourth-largest cryptocurrency by market cap, was trading at $560 at the time of publication β down 2% on the day. The losses run deeper across longer timeframes, with BNB shedding 14% over the past 30 days alone and now sitting 59% below its all-time high of $1,369.
Featured image generated with OpenArt.Β