On the eve of the full entry into force of the EU Regulation on the Regulation of Encrypted Assets Markets, Binance began to adjust its local operating arrangements. The platform has informed some users in France, Italy, Spain and Poland that it will not be possible to continue using some of its services as of next week, while local registration of new users will be suspended.

Transition adjustment by 1 July

On the basis of notifications received from users, Binance indicated that the Platform was currently unable to continue to provide some of its existing services under the new regulatory rules. According to the company, the user ' s assets were still regularly accessible and financial withdrawal guidelines were provided to affected clients.

The MiCA will be fully implemented within the EU on 1 July. Under this framework, if a encrypted asset service provider is to operate within the 27 member States, it will need to obtain a license in at least one member State before providing services to the entire European Union through “access rights”.

Existing local registration is not enough to replace licence plates

Reports indicate that Binance currently holds local registration in some European markets, but that such local registration will not be sufficient to replace a single licence upon the entry into force of the MiCA. If permission is not obtained in a timely manner, the relevant platform needs to downsize or discontinue its regulated operations.

Binance has not yet published a complete list of services that will be restricted, but it appears from the notifications that some EU users will lose access to certain transactional functions from next week.

  • The markets include France, Italy, Spain and Poland.
  • The platform has suspended the registration of new users in some areas
  • Statements relating to withdrawal of funds received by affected users

France or focus on next steps

It is mentioned that Binance is taking France as the new license application. Its application in Greece had previously been withdrawn. However, ratification is not expected to be completed by 1 July.

Binance states that its business plan for Europe has not changed and that it is still expected to obtain a MiCA licence in the coming months. Prior to this, the Platform was adjusting the range of services to meet the new requirements.

As one of the largest encrypted trading platforms in the world, Binance’s contraction of services in the European Union may make competitions that have been approved by the MiCA attractive to more local users and transaction flows.