Binance told customers in four EU nations this week that it will halt operations by July 1, the Financial Times reported Friday. The shutdown follows the exchange's failure to obtain a MiCA license before the regulation's mandatory enforcement date, which closes a six-year runway that let unlicensed operators serve EU clients under older national frameworks.
Under MiCA, any crypto asset service provider needs a single license from one EU member state to passport across all 27 countries. Firms without that authorization must exit the bloc entirely. Binance withdrew its application in Greece on Wednesday, citing processing delays. The Hellenic Capital Market Commission never issued a formal decision on an application submitted in January 2026 through a local holding company. The exchange now plans to apply through France, but Financial Times reporting suggests any approval would arrive well after July 1.
Greek regulators flagged concerns about Binance's anti-money laundering controls and whether founder Changpeng Zhao could satisfy MiCA's "fit and proper" standard for company officers. Zhao stepped down as CEO and pleaded guilty in 2024 to failing to implement AML safeguards. He served four months in prison before receiving a presidential pardon in October 2025 and retains roughly 90% of the exchange. France separately opened a judicial investigation last year into whether Binance facilitated money laundering.
Binance's 2023 guilty plea to US sanctions and AML violations already cost the firm more than $4.3 billion in penalties. That enforcement record, combined with ongoing regulatory scrutiny in France and lingering questions about Zhao's personal compliance history, appears to have blocked the pathway to a timely EU license.
Rivals including Kraken, Coinbase, OKX, and Crypto.com all secured MiCA licenses months ago. Binance assured users in its suspension notices that their assets remain safe and accessible, but the July 1 deadline gives customers less than six months to migrate holdings or wind down positions on the platform.
The suspension marks the most visible casualty of MiCA's hard enforcement. Binance's size made it a test case for whether the world's largest crypto exchange by volume could clear EU regulatory hurdles or would face forced exit. The answer is now clear.