Binance Exits France; $1.6B in Withdrawals Over Month

Binance had operated in France under a temporary registration granted by the AMF in 2022. That registration allowed it to offer crypto services while it pursued full MiCA authorization. The rejection voids that registration, forcing Binance to wind down its French operations.

The $1.6 billion withdrawal figure points to a loss of user confidence that goes beyond the French market. Binance's global withdrawal volumes also rose around the same period, though the France-specific share accounted for roughly 29% of the total in the peak week.

The AMF has not disclosed the reasons for rejecting Binance's application. Under MiCA rules, national regulators can deny authorization if the applicant fails to show adequate governance, anti-money laundering controls, or consumer protection. Binance's compliance history includes enforcement actions in the U.S., the U.K., and Japan over the past two years, including a $4.3 billion settlement with the U.S. Department of Justice in 2023.

Binance said it would continue to pursue MiCA authorization through a different EU member state but did not specify which one. The exchange already holds a license in Poland and has applied in Italy and Spain. Whether those applications succeed depends on each country's assessment of Binance's compliance record and the AMF's reasoning.

For now, French users face a binary decision: withdraw before the custody transfer or go through identity verification with an unknown third party. The $1.23 billion single-week outflow suggests many chose the first option quickly.