Exchange limits new user registration and services as regulatory deadline passes
Binance will stop accepting new EU users and restrict certain services starting July 1 after failing to secure Markets in Crypto-Assets (MiCA) authorization from an EU member state before the regulatory deadline.
The exchange announced withdrawal of its MiCA license application in Greece on Wednesday, June 25. Under MiCA rules, Binance will halt onboarding of new EU-based accounts and reduce available services to position management and withdrawals for existing users after the deadline, according to Cointelegraph reporting by Helen Partz and Yohan Yun.
Binance said in exchange notices that “all digital assets are still available for withdrawal” and that user balances will “remain available and safe as always.” The company advised users to move assets to self-custody wallets or transfer to other MiCA-licensed crypto-asset service providers (CASPs) including Revolut and OKX, which have been recruiting new EU users ahead of the transition.
The restriction affects a significant portion of Binance’s user base. The exchange operates with approximately 300 million global clients. Binance’s EU app accumulated 4 million downloads last year, though EUR trading accounts represent only 1% of the exchange’s spot volume.
Dominik Tomczyk, CEO of SIA AlphaRoute and Kanga Exchange EU, stated that for existing users, “nothing will change,” apart from restrictions on marketing and user acquisition within the EU. Tomczyk and co-CEO Sławomir Zawadzki suggested that concerns about service disruptions are being overstated, noting that non-licensed platforms may continue serving existing EU users under the legal concept of “reverse solicitation.”
However, gaps remain in Binance’s public guidance. The company did not provide specific details on how staking rewards or active positions will be treated after July 1, nor did it clarify whether trading will remain available. Cointelegraph approached Binance for an official statement on the scope of service restrictions but received no response.
An anonymous Binance EU user expressed cautious acceptance of the transition, saying “I’ll honestly continue using Binance until I see evidence of a potential enforcement action.” This sentiment reflects broader uncertainty about how MiCA enforcement will unfold across the bloc.
The July 1 deadline marks the end of MiCA’s transition period for existing platforms. Exchanges that secured authorization or applied for licenses before the cutoff can continue operations. Binance’s withdrawal from the Greek authorization process leaves it without a regulatory pathway to operate as a licensed CASP in EU member states after the deadline takes effect.
What happens to existing positions
Binance has confirmed that withdrawals will remain available after July 1. Services will be reduced to position management and withdrawals, though the exchange has not clarified whether this includes active trading, lending, or staking functions. Users concerned about service continuity have been directed to transfer assets to licensed alternatives or self-custody solutions before the deadline.
