Binance EU Services Suspended Amid Regulatory Hurdles

Binance, the world's largest cryptocurrency exchange by trading volume, will suspend services for EU-based customers starting July 1. The exchange failed to secure authorization under the Markets in Crypto-Assets (MiCA) regulation due to concerns over its founder, Changpeng Zhao's, criminal record.

MiCA requires that company owners and managers be assessed as 'fit and proper', but Zhao pleaded guilty to anti-money laundering and sanctions violations in 2023 and served a four-month prison sentence. He retains roughly a 90% ownership stake in Binance.

The suspension means new spot orders, deposits, account registrations, and yield-generating products will no longer be accepted from EU-resident customers. However, user funds remain safe and accessible, and withdrawals will function normally.