Binance to Halt Services in the EU Next Week

Binance, a major cryptocurrency exchange, has announced that it will stop its operations in the European Union beginning next week, as it lacks the necessary authorization to continue in that region.

A recent report indicated that an application for a license covering the entire EU, specifically in Greece, was unsuccessful last week. According to the regulations governing crypto assets, Binance needs to secure a license by July 1 to avoid penalties.

In response to inquiries from CNBC, Binance expressed intentions to seek approval in other EU nations. Sources familiar with the company’s plans shared that it aims to apply for a license in France, though it appears unlikely to meet the July 1 deadline.

Users in countries like Poland, Italy, Spain, and France—where Binance holds local licenses—received notifications about how to withdraw their assets from the platform. The company remarked that it would “take the necessary steps by July 1 to remain compliant with applicable requirements.”

They mentioned that some customers might be impacted and assured that they would provide detailed information about subsequent steps. Binance remains optimistic about securing a license “in the coming months.”

This development has led some competitors with EU approvals, such as Bitpanda, to promote their services more aggressively. Bitpanda’s founder noted the significance of reliability in the face of regulatory challenges, emphasizing that the EU prioritizes consumer protection.

Additionally, the founder of OKX highlighted his firm’s commitment to reliable cryptocurrency and fintech services in this context.

Binance’s current troubles follow a series of investigations and legal issues in recent years. The exchange has been banned in the UK since 2021 and, in 2023, it pleaded guilty to several criminal charges, which resulted in hefty fines exceeding $4.3 billion from U.S. authorities for money laundering and violations of financial sanctions.

A judicial investigation by French authorities into Binance was launched last year, with allegations of money laundering. The company, however, has denied these claims.

Founded in 2017 by Changpeng Zhao, Binance is recognized as one of the largest cryptocurrency exchanges globally by trading volume. Zhao faced legal issues himself, having been sentenced for money laundering violations, but was later pardoned.