Binance has notified users in several EU countries. The company disclosed that the platform would suspend some of its services and cease to accept new EU user registrations due to the inability to obtain the licences required by the European Union Encrypted Asset Market Regulation Act MiCA by 1 July.

Multi-country users notified

CoinDesk refers to an e-mail sent by Binance to the users, stating that the users in France, Italy, Poland and Spain have received notifications. The mail indicates that the platform will limit some of its services to meet EU licensing requirements.

At the same time, the company indicated that the user ' s assets remained secure and accessible. This means that Binance is scaling down EU operations that are not covered by licence plates, rather than closing user accounts or freezing assets in full and without delay.

July 1st is the key point.

Under the European Union arrangement, if a encryption company is to provide services within the 27 member States, it must obtain a MiCA licence plate from at least one member State by 1 July. Non-licensed platforms require the phasing out of operations.

In response to CoinDesk, the speaker said that the Platform had now ceased to accept new registrations in the European Union area and would limit existing services to meet regulatory transition requirements.

Next move to the French application

Just the day before the user's notice was issued, Binance indicated that it had withdrawn its MiCA licence application in Greece, but stressed that it had not withdrawn from the European market. According to the company, the European business objectives have not changed and there is still confidence in obtaining the MiCA licence in the coming months.

The British Financial Times quoted informed sources that Binance was planning to move to France for authorization. If approved, the platform could conduct compliance services throughout the European Union through single-member licensing.

Additional information:MiCA allows encryption companies to “pass” across the EU after a Member State has won a license. Thus, the pace of approval of a single licence has had a direct impact on the ability of the exchange to operate across borders in the EU.