Binance to Restrict EU Services After Missing MiCA License Deadline
Binance told users in several European Union countries that it will restrict services because it will not have a MiCA license by the July 1 deadline. The exchange said customer assets remain safe and accessible while it winds down unlicensed activity in the bloc.
What happened?
Binance told users in several European Union countries that it will restrict services because it will not have a MiCA license by the July 1 deadline. The exchange said customer assets remain safe and accessible while it winds down unlicensed activity in the bloc.
Why it matters
Binance has notified customers in the European Union that it will suspend some services after failing to secure a Markets in Crypto-Assets license before the rules take full effect on July 1. The exchange has also stopped accepting new registrations in the bloc, according to CoinDesk.
Binance has notified customers in the European Union that it will suspend some services after failing to secure a Markets in Crypto-Assets license before the rules take full effect on July 1. The exchange has also stopped accepting new registrations in the bloc, according to CoinDesk.
The development matters because MiCA is becoming the EU’s central licensing framework for crypto companies. From July 1, firms need authorization from at least one EU member state to offer services across all 27 member countries, while unlicensed firms must wind down EU activity.
Binance told users that it was no longer able to accept new registrations and would restrict services. In its notice, the company said customer assets remain safe, secure and accessible as it reduces activities that require authorization.
The move follows Binance’s withdrawal of a MiCA application in Greece. The company said it would seek authorization in another EU country and told CoinDesk that its European ambitions remain unchanged.
According to the Financial Times, cited by CoinDesk, Binance plans to approach France for authorization. Binance said it remains confident it can secure a MiCA license in the coming months.