@Cz_binance has weighed in on Binance's regulatory standoff with the European Union, arguing that forcing users off the exchange means cutting them off from the deepest liquidity in the crypt
@Cz_binance has weighed in on Binance's regulatory standoff with the European Union, arguing that forcing users off the exchange means cutting them off from the deepest liquidity in the crypto market. The comments follow confirmation that @Binance will suspend services for EU customers from July 1, 2026, after failing to secure a license under the bloc's Markets in Crypto-Assets (MiCA) framework.
MiCA, which establishes a unified licensing regime for crypto-asset service providers across all 27 EU member states, reached its final enforcement deadline on July 1, 2026. A single CASP license granted by any one EU member state allows a firm to operate across all 27 EU countries and the wider European Economic Area. Binance had staked its European future on Greece as its licensing gateway, submitting its formal MiCA license application to the Hellenic Capital Market Commission (HCMC) on January 23, 2026. The Greek regulator ultimately did not approve it, and Binance withdrew the application on June 24, according to a company statement.
According to people familiar with the process, Greek regulators raised concerns in several areas, in particular Binance's anti-money-laundering controls and whether founder Changpeng Zhao could pass the "fit and proper" test that MiCA applies to an applicant's management and ownership.In 2023, Binance pleaded guilty in the United States to anti-money-laundering and sanctions violations and paid more than $4.3 billion. Zhao stepped down as chief executive, pleaded guilty to a criminal charge, served four months in prison, and was later pardoned by President Donald Trump in October 2025.
Customers in markets including Poland, Italy, Spain, and France received emails explaining how to withdraw their funds after the company told them it "will not be granted a MiCA license by 30 June 2026."The exchange, which has halted new registrations in the bloc, says users' assets remain safe and accessible as it winds down unlicensed EU activities.
After withdrawing its MiCA application in Greece, Binance plans to seek authorization in France, saying it remains confident it will secure an EU license in the coming months, the Financial Times reported.The exchange's France SAS has held a Digital Asset Service Provider registration since May 2022, giving it a head start. However, any approval is likely to come after the July 1 deadline, leaving it unable to serve EU customers in the interim.
CZ's core argument, that restricting user access to Binance compromises consumer protection rather than strengthening it, finds some broader support. The wider point Binance is making, that pushing the largest exchange out would thin liquidity, reduce competition and shift activity outside the bloc, is not unreasonable.When a major exchange exits or gets locked out of a market, trading volume migrates. Users find workarounds, often involving VPNs and offshore accounts, which is precisely the kind of regulatory shadow banking that MiCA was designed to prevent.
Meanwhile, Binance's licensed rivals stand to benefit. More than 200 firms now hold full CASP licenses across the bloc, among them Coinbase, OKX via Malta, and Kraken via Ireland. As Binance scrambles for any route to stay in the market, its rivals are positioned to absorb displaced users.ESMA has emphasized that users who remain on unauthorized platforms lose the legal protections guaranteed by MiCA.
Sources:CoinDesk: Binance Tells EU Users It Will No Longer Provide Services After Failing to Secure MiCA LicenseBitcoin.com News: Binance Races for New EU License Route Ahead of July 1 MiCA DeadlineEuronews: Europe's Crypto Reset: MiCA Creates a Single Market as Hundreds of Firms Face Exit
