Binance Suspends EU Operations Over MiCA Licensing Issues

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

The move comes after Binance failed to obtain a license under the bloc's new framework regulating the industry, known as MiCA (Markets in Crypto-Assets Regulation).

MiCA requires all crypto-asset service providers to get a license by July 1 or risk penalties. The regulation aims to reduce market abuse and financial crime risks, protect consumers and investors, strengthen oversight of the sector, and replace fragmented national regulations with a single set of rules.

Binance has been under regulatory scrutiny for years, including an ongoing investigation by French authorities and a guilty plea in 2023 by co-founder and former CEO Changpeng Zhao to anti-money-laundering violations.