Binance halted spot and margin trading in France and other markets after missing the EU's MiCA licensing deadline. Affected users can withdraw assets but must wait for Binance to secure MiCA
Binance stopped offering trading services in France and several other European countries on July 1 after missing the European Union's MiCA licensing deadline, according to BFM Business. The exchange now allows only withdrawals in affected markets, while spot and margin trading have ended until it secures authorization under the bloc's crypto framework.
Binance previously served about 2 million users in France before the restrictions took effect. The exchange informed customers that their assets remained safe while encouraging those needing active trading to transfer funds to a regulated platform or a personal wallet.
According to BFM Business, crypto firms had until July 1 to obtain MiCA approval. However, only 240 of roughly 5,000 companies that previously served European clients remain authorized. In France, only 24 firms secured the required license.
Meanwhile, Binance said it continues seeking MiCA approval through another European jurisdiction. Until then, affected users can only withdraw their digital assets.
The service suspension prompted many users to move their holdings before the deadline. Carlita Crypto said she transferred her assets because withdrawals remained available, but trading had stopped. Julien, who operates the CryptoBoost website, also said he moved his cryptocurrencies before the restrictions began.
However, some users kept their assets on Binance after the company said the situation was temporary. According to Cryptoast, Binance recorded about $1.6 billion in net outflows during the past month while continuing to hold roughly $114 billion in crypto assets.
At the same time, crypto.news reported that Coinbase and OKX promoted regulated services to eligible European users before the MiCA deadline.
The new framework now requires crypto firms to obtain authorization from one European Union member state before serving customers across the bloc. Germany and France led the MiCA rollout, with 244 crypto-asset service provider licenses issued by June 29.
The regulation also affects stablecoins, with USDT removed from regulated European exchange order books after Tether did not seek MiCA authorization. For now, Binance customers in affected countries retain withdrawal access, while trading services remain unavailable until the exchange obtains MiCA approval.
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