Binance will restrict services for some European Union customers after confirming that it will not secure a Markets in Crypto-Assets (MiCA) licence before the 30 June deadline.

The exchange has withdrawn its application to the Hellenic Capital Market Commission in Greece and plans to seek authorisation in another member state. It is contacting customers directly about how the change will affect their accounts.

Binance said the action required would depend on a customer’s country, account status and the services they use. It is not asking every EU user to withdraw their assets before 1 July and said funds would remain accessible.

The Financial Times reported that the Greek application had been rejected, citing people familiar with the process. Binance said it had received no formal decision and withdrew as the end of the transition period approached.

“Over many months, Binance worked constructively and in good faith with the HCMC,” the company said. It added that, “with no formal decision as the MiCA transition period comes to an end”, it had chosen to pursue authorisation in another country.

Binance has not identified where it will apply next, although reports suggest France is under consideration.

“Europe is an important region for Binance,” the company said. “We are confident we will secure authorisation in another EU Member State in the coming months.”

Until then, the services available to EU users will depend on the legal entity serving them and the products held in their accounts.

What changes on 1 July

The deadline ends the period during which crypto businesses could continue operating under existing national registrations while seeking full MiCA authorisation.

The European Securities and Markets Authority said providers that remain unauthorised must “take immediate steps to wind down their EU activities in an orderly manner”.

They must stop onboarding customers, opening accounts and marketing services in the EU. Activity can continue only where needed to sell or transfer assets, close positions or complete a customer’s exit.

Providers must explain when services will end, what customers need to do with their assets and whether remaining positions could eventually be closed automatically.

The restrictions also apply to providers based outside the EU. ESMA has warned that offshore companies cannot continue an established European business by claiming customers approached them independently under MiCA’s narrow reverse solicitation exemption.

Customers have been advised to check ESMA’s register for the specific legal entity holding their account. A licence issued to one company does not automatically cover every business using the same group or brand name.

National registrations fall away

Before MiCA, crypto businesses generally registered separately in individual countries, with many regimes focused primarily on anti-money laundering obligations.

MiCA replaces that system with a common authorisation framework covering governance, financial safeguards, conduct, disclosures and the treatment of customer assets. An authorised entity can passport its approved services across the European Economic Area.

Hogan Lovells said industry estimates put the number of registered virtual asset service providers in Europe at more than 3,000 in 2024. Poland alone accounted for more than 1,400.

By May 2026, the law firm had counted 194 authorised crypto-asset service providers, including credit institutions. It estimated that around 75 per cent of providers registered under the previous regimes could lose that status when the remaining transition periods ended.

The figures do not mean only 194 exchanges have secured licences. The authorised group includes banks, custodians, payment companies and other crypto businesses, while the older total combines registrations issued under different national systems.

Even so, the difference points to a substantial reduction in the number of companies able to serve European customers.

“MiCA does not simply harmonise the market; it filters access to it,” Hogan Lovells said.

Several of Binance’s largest competitors secured authorisation ahead of the deadline. Coinbase is licensed through Luxembourg, Kraken through Ireland and OKX through Malta, allowing their authorised European entities to offer approved services across the region.

Authorised providers compete for customers

Licensed companies are already positioning themselves to gain customers from providers leaving or reducing their EU operations.

Ferdinando Ametrano, chief executive of Italian crypto business CheckSig, described the Binance case as “the first real stress test for the European market”.

He said the restrictions were unlikely to have a substantial direct effect on global crypto prices because Europe represents a relatively limited share of overall liquidity.

“The most visible effect will likely be the reallocation of users toward MiCAR-compliant operators,” he said.

CheckSig has a direct commercial interest in that movement. The company has launched a programme for Binance customers that includes six months of free custody and preferential support with Italian crypto tax requirements.

The deadline could also affect businesses that use crypto and stablecoin companies for payments, treasury operations and settlement.

Confirmo, which holds MiCA authorisation and payment institution status from the Central Bank of Ireland, has urged businesses to check the regulatory position of the entity handling their transactions.

Derek Corcoran, chief executive of Confirmo Limited, said companies relying on an unauthorised provider could face disruption to contracts, settlements and reconciliation processes.

“From 1 July, the market will start to consolidate around the providers that took compliance seriously and quality of regulation will become a genuine competitive advantage,” he said.

Confirmo, like CheckSig, could benefit as customers and businesses move towards authorised providers. However, Corcoran’s warning reflects a broader issue for companies whose payment or finance systems depend on a provider that can no longer operate in the EU.

Binance said it would give affected customers account-specific instructions through official emails and its app. It has also warned users that it will never ask for passwords, private keys or two-factor authentication codes during the process.