Binance halted new registrations and spot trading for EU users after MiCA went live. Withdrawals remain open. The exchange withdrew its Greek license bid and is seeking authorization elsewhere.
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Binance locked out European Union users from spot trading, new deposits, and staking services on Sunday as the Markets in Crypto-Assets Regulation went fully into force. The exchange said customer assets remain safe on a 1:1 basis and that withdrawals and Convert functions are still available.
The restrictions cover new user registrations, spot trading orders, deposits, Earn products, staking, and Launchpool. Binance first applied the measures in France, Italy, Poland, and Spain, then extended them to all EU customers. The company said the phased rollout reflected different national requirements.
Binance initially sought MiCA authorization through its Greek entity but withdrew that application in June. The exchange said it will apply for a license in another EU member state and is in talks with financial regulators. The European Securities and Markets Authority has advised users to check whether an exchange holds a MiCA license before using its services.
Competitors that already hold MiCA licenses include Coinbase, OKX, Kraken, Bybit, and Bitpanda. Those exchanges can offer the full suite of crypto services to EU clients under the new rules. The gap leaves Binance unable to onboard new EU users or offer spot trading, while its rivals can operate normally.
Binance has stressed that the changes are a temporary service restriction, not an exit from the European market. The company did not set a deadline for users to withdraw funds. CEO Richard Teng said the firm is committed to supporting affected customers through the transition.
The restrictions come as Binance also faces a separate legal challenge in the UK, where investors are seeking $200 million from the exchange and former CEO Changpeng Zhao over crypto derivatives. That case is ongoing.
For EU users holding assets on Binance, the practical effect is a freeze on new activity. Existing positions can be unwound through Convert or withdrawn to a wallet or another exchange. Users looking for a MiCA-compliant alternative can check which platforms hold authorization from their local regulator.
Binance's next move will be finding a new EU member state willing to grant a MiCA license. The exchange has not named a specific country or timeline. Until then, its European business is limited to custody and withdrawal services.
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