According to the Financial Times, Binance announced it will cease providing services to EU customers starting next week due to its inability to obtain a license under the European Union’s new cryptocurrency regulation, MiCA.
As of July 1st, cryptocurrency companies operating in the European Union will be required to hold a MiCA license. Companies that fail to meet this licensing requirement risk facing penalties.
According to the news, Binance’s application for an EU license via Greece was rejected last week. The company is now reportedly planning to apply for a new license via France.
It has been reported that withdrawal instructions were sent to Binance users in Poland, Italy, Spain, and France this week. While Binance acknowledges that some users may be affected before July 1st, they stated that users are not obligated to withdraw their funds before that date and that customer assets are secure.
Binance co-CEO Yi He stated that Europe remains an important market for the company and that Binance continues to be committed to the region.
Yi He stated that building trust with regulators takes time and that Binance will continue to work closely with both European Union institutions and national authorities.
The Binance executive also argued that crypto service providers, including Binance, could become more important financial system gatekeepers than traditional financial institutions in the future, driven by the impact of underlying technology and market adoption.
*This is not investment advice.
