Cryptocurrency exchange Binance has suspended its services in several European countries, mainly France, after failing to obtain the necessary licenses under the European Union’s new regulatory framework for crypto assets, MiCA, by the deadline. This decision came into effect on July 1 and directly affected users in France in particular.
The company was forced to suspend its cryptocurrency trading services in France due to its failure to obtain the required operating license in time under MiCA regulations. As a result, domestic users will not be able to conduct spot trading or credit trading.
The platform can only be used for asset withdrawals. France is known as one of Binance’s key markets, with the exchange having around 2 million customers in the country.
Binance stated that user assets are safe and all customer funds are securely stored. The company emphasized that the service interruption was not due to security issues with user assets and was entirely related to its regulatory compliance process.
MiCA aims to create a common regulatory framework for crypto asset service providers across the European Union. The new system will impose stricter obligations on exchanges and crypto companies in areas such as licensing, consumer protection, transparency, and capital adequacy. As a result, many crypto companies operating in Europe have been working in recent months to speed up the licensing process.
Binance’s suspension in France is considered one of the first major impacts of MiCA (Microsoft Action Against Capitalization) on the industry. Experts say this development is a serious warning for other global crypto companies wishing to operate in the European market. It is stated that similar regulatory pressures may have a more pronounced impact on European service models and corporate structures in the future.
*This is not investment advice.
