Binance Halts Trading in France, Some European Countries After MiCA License Failure

Binance has halted trading services in France and some other European countries after failing to secure a license under the European Union’s Markets in Crypto-Assets regulation, or MiCA.

BFM Business reported on July 5, citing Wu Blockchain, that Binance suspended spot and margin trading for users in those countries from July 1, when the MiCA rules took full effect. Users can still withdraw their crypto assets, but cannot place new trades.

Binance said it had about 2 million users in France alone and that customer assets remain safely protected.

The move followed Binance’s failure to obtain a MiCA license. The exchange had previously pursued a license in Greece but withdrew its application, and later said it would seek authorization in another European Union member state.

On-chain data also shows the impact of the regulatory action. According to Wu Blockchain, Binance recorded about $1.6 billion of net outflows over the past month. Even so, it still manages about $114 billion in crypto assets and remains the world’s largest exchange.

MiCA was introduced to establish a unified regulatory framework for crypto assets across the European Union. Under the rules, exchanges without a license are generally barred from offering trading services in the bloc. Major global exchanges, including Binance, are undergoing approval procedures to meet those requirements.