According to the Financial Times, Binance has announced that it will stop providing services to EU customers starting next week as it is unable to obtain a license under the European Union’s new cryptocurrency regulation MiCA.
Starting July 1, crypto companies operating in the European Union will be required to hold a MiCA license. Companies that do not meet this licensing requirement risk penalties.
According to the news, Binance’s EU license application through Greece was rejected last week. The company is now reportedly planning to apply for a new license via France.
This week, withdrawal instructions were reportedly sent to Binance users in Poland, Italy, Spain, and France. Binance acknowledged that some users may be affected before July 1st, but said users are under no obligation to withdraw funds before that date and customer assets are safe.
Binance co-CEO Yi He said Europe remains an important market for the company and Binance will continue to contribute to the region.
Yi He said that building trust with regulators takes time, and Binance will continue to work closely with European Union institutions and national authorities.
Binance executives also argued that crypto service providers, including Binance, could become more important gatekeepers of the financial system than traditional financial institutions in the future due to the impact of their underlying technology and market adoption.
*This is not investment advice.
