In the notification sent to its users in the European Union, Binance announced that it will suspend some services as it will not be able to obtain the required MiCA license under the Crypto Asset Markets Regulation by July 1. Binance, one of the world’s largest cryptocurrency exchanges by transaction volume, also stopped new user registrations within the block.
MiCA schedule and service restriction
According to the company spokesperson, Binance sent an e-mail to customers in some countries in the European Union and informed them that it could not accept new registrations and would restrict certain services. It was stated that the notifications reached users in France, Italy, Poland and Spain.
Under European Union rules, crypto companies must have a MiCA license from at least one member country as of July 1 in order to offer services in all 27 member countries. Companies that do not have a license are asked to gradually terminate their activities within the Union.
Mini dictionary: MiCA is the European Union’s common regulatory framework for crypto asset service providers and issuers. The aim is to harmonize licensing and surveillance rules between member states so that companies can operate throughout the Union with a single permit.
In a statement to CoinDesk, Binance stated that their European targets have not changed and that they are confident that they will receive the MiCA license in the coming months.
Message regarding user entities
In the message the company sent to customers, it was emphasized that user assets are safe and will always remain accessible. Binance stated that there will be no interruption in customers’ access to their funds during the process of terminating its unlicensed European Union activities.
This statement comes at a time when there is still uncertainty about the scope of service restrictions. The company did not share details with the public about which products or services would be affected and to what extent.
Greece application withdrawn, eyes on France
Binance announced on Thursday that it had withdrawn its MiCA license application in Greece. The company argued that this did not mean withdrawal from Europe and stated that it would take steps to obtain authorization from another European Union country.
According to the Financial Times, based on sources close to the subject, Binance’s new target is France. It was reported that the company plans to advance the authorization process in Europe through this country.
Binance’s latest move came in the final days of the license race that will provide single market access in the European Union. This step, taken days before the June 30 deadline, indicates a temporary contraction in the stock exchange’s European operations.
