Binance to Exit France, Citing MiCA Licensing Hurdles
Binance, the world’s largest cryptocurrency exchange, is reportedly set to close all customer accounts in several European Union countries, including France, by December 31, after failing to secure the necessary licensing under the EU’s Markets in Crypto-Assets (MiCA) regulation.
Regulatory Setbacks and Service Disruptions
The exchange withdrew its MiCA license application with Greece’s Hellenic Capital Market Commission (HCMC) earlier this year, stating its intention to seek authorization in another EU member state. However, it missed the July 1 deadline, preventing its compliance with the new regulatory framework that has seen rivals such as Kraken, Coinbase, Crypto.com, and OKX successfully obtain licenses.
Reports have suggested that Christine Lagarde, President of the European Central Bank, personally intervened to block Binance’s license, citing the company’s past legal issues in the United States and concerns over the adoption of dollar-backed stablecoins.
In recent months, numerous European users have voiced concerns on social media platform X about service disruptions. The situation appears to be escalating for French clients, with reports indicating that Binance France will wind down all customer accounts by year-end due to the MiCA licensing requirements.
Deposits are reportedly already suspended, but users will be able to withdraw their funds until December 31. A significant interim deadline is November 29, after which users will face a monthly fee of 0.025% of their remaining balance, or 10 USDC, whichever is greater, if they have not moved their crypto.
“After accounts close on December 31, 2026, Binance may convert or transfer any remaining assets under its terms of service. Binance confirms customer assets remain accessible during the wind-down,” Coin Bureau noted.
Further reports from X user Vikram suggest that Binance accounts in Spain, Italy, and Poland may also face permanent closure by New Year’s Eve. Affected users are advised to check their emails and account notifications, withdraw funds before applicable deadlines, and monitor the regulatory status of alternative exchanges before transferring assets.
“This does not mean Binance is shutting down across the entire EU. Only certain customers are reportedly affected,” the user concluded.
Recovery from Major Hack Underway
The news of the regulatory challenges comes as Binance makes significant strides in restoring services following a massive $6.3 billion hack at the end of October, which marked the largest cyber incident in the history of the cryptocurrency industry.
The exchange acted swiftly after the breach, initially halting withdrawals and deposits to conduct security checks and collaborate with law enforcement. Binance pledged to reimburse affected users through its SAFU (Secure Asset Fund for Users) and its own reserves.
Shortly thereafter, the company began the phased recovery of withdrawal services, reinstating networks including Bitcoin, Ethereum, BNB Smart Chain, and XRP. Most recently, Binance announced that withdrawals for HYPE and APT tokens have also been re-enabled.
While Binance stated that approximately 95% of the stolen funds have been recovered, the hack has inflicted considerable reputational damage. Following the restoration of withdrawal services, users withdrew nearly $4.65 billion in less than 10 hours, and total net outflows for the past month have exceeded $10.2 billion.
