Binance Axes EU Operations as Crypto Regulation Tightens

Binance, the world's largest cryptocurrency exchange by trading volume, has announced plans to temporarily suspend services to its customers in the European Union starting next week.

The move comes after Binance failed to obtain a license under the EU's Markets in Crypto-Assets Regulation (MiCA), which requires all crypto-asset service providers to secure authorization by July 1 or risk penalties.

Binance has been subject to regulatory scrutiny for years, with French authorities continuing an investigation into the exchange and co-founder Changpeng Zhao pleading guilty to anti-money-laundering violations in the US in 2023.

The company claims it is confident it will obtain a MiCA license in the coming months and will announce the member state through which it plans to operate once the authorization process is complete. In the meantime, customers are being advised to withdraw their assets.