Binance France Halts Trading After MiCA License Failure

Binance stopped offering crypto trading in France after failing to obtain a MiCA license by the July 1 deadline, BFM Business reported. French users can now only withdraw their assets.

Net outflows from the exchange reached $1.6 billion over the past month, on-chain data showed. A single week saw $1.23 billion in withdrawals, many driven by self-custody moves. Ethereum withdrawal transactions hit a three-year high of 166,000 in that period. Users chose to move coins off the exchange rather than wait for regulatory clarity, the data suggested.

The suspension affects roughly 2 million French users. Binance had offered spot, futures, margin and custody services in the country. The exchange said user funds remain safe.

Binance applied for MiCA licenses in France and Greece. The Greek application drew opposition from ECB President Christine Lagarde, BFM Business reported. Binance later withdrew the Greek application. The failed French application triggered service suspensions not just in France but also in Poland, Italy and Spain.

Teng's statement came as the exchange halted services in the four EU countries. Users received recommendations to withdraw their crypto assets.

BNB price rose 6% to $583 over the past week. Futures open interest climbed 3% to $876 million in the same period. The price gain suggests the market sees the regulatory setback as limited to specific EU markets rather than a threat to the core exchange, which still holds $114 billion in assets.

Coinbase (COIN) carries an Alpha Score of 29, reflecting its own regulatory pressures in the region.

Binance has expanded into the Philippines. "The Philippines has always been one of the most vibrant crypto communities in the world," Teng said. The company gave no timeline for a new MiCA application in the EU.

Binance loses France trading access after MiCA deadline