Binance Loses EU Licence Bid, Suspends Service July 1

In practice, the service suspension means EU users on the platform lose the consumer protections MiCA is designed to guarantee. ESMA advises investors to check their provider's authorisation in the ESMA register and, if in doubt, to transfer crypto assets to licensed platforms or self-custody wallets.

The failure to secure EU approval is a major setback for an exchange that has spent years trying to position itself as compliant after a string of penalties. In 2023, Binance pleaded guilty to criminal charges related to money laundering and sanctions breaches, agreeing to pay more than $4.3bn to US authorities. Founder Changpeng Zhao resigned as CEO, pleaded guilty, served four months in US prison and was later pardoned. Those concerns echoed into the Greek application, which was reviewed jointly by authorities in Greece, Ireland and Latvia.

MiCA is reshaping the European crypto market. According to ESMA, only around 250 companies currently hold full authorisation, down from more than 1,200 providers previously active in the EU. That conversion rate of less than one in five creates clear winners and losers. Firms already regulated can passport their licence across all 27 member states.

One such platform is Bitpanda, which holds BaFin regulation in Germany alongside Austrian and Maltese licences. Through a limited campaign, new users can receive 3% cashback and a €25 BTC bonus using the code cryptoticker. The offer runs until July 5 or until the allocation is reached.