Binance Restricts Services Amidst EU Regulatory Scrutiny

Binance has restricted services for some European users after failing to secure an operating license before the July 1 MiCA deadline. Regulators raised concerns over Binance's financial-crime compliance history.

The exchange withdrew its MiCA license application in Greece last week and said it would seek approval in another EU member state. Without a license, Binance cannot use MiCA's passporting system to offer regulated crypto services across the bloc.

OKX CEO Star Xu questioned Binance's approach, saying that only some European jurisdictions were affected by Binance's restrictions, naming Italy, Spain, France, Poland, Belgium, and Sweden. He claimed users in other EEA markets could still sign up, deposit, and trade.