Binance stopped offering trading services in France and several other European markets on July 1 after failing to meet the European Union's MiCA licensing deadline. BFM Business reported that users in the affected jurisdictions can now only withdraw funds, while spot and margin trading remain unavailable until the exchange obtains authorization under the EU framework.
Before the restrictions took effect, Binance served about 2 million users in France. The company told customers that their assets remained safe and advised anyone needing active market access to move funds either to a regulated platform or to a personal wallet. For users who stayed on the exchange, withdrawals are still open, but trading functions have been shut off.
MiCA now requires one member-state license before EU-wide service
Under the new regime, crypto firms had until July 1 to secure MiCA approval if they wanted to continue serving clients across the bloc. The rule now requires a company to obtain authorization in one EU member state before passporting services across the wider European market. Germany and France were among the leaders in the rollout, and by June 29, a total of 244 crypto-asset service provider licenses had been issued.
The transition left many firms on the outside. Of roughly 5,000 companies that had previously served European users, only 240 remained authorized, according to BFM Business. In France alone, just 24 firms secured the required license. That low conversion rate helps explain the abrupt service cutbacks seen at the start of July.
Users moved holdings before the cutoff as Binance seeks approval elsewhere
Binance said it is still pursuing MiCA authorization through another European jurisdiction. Until that process is complete, customers in the affected markets are limited to withdrawals. Some users acted before the deadline. Carlita Crypto said she moved her assets while withdrawals were still available because trading had already stopped. Julien, who runs the CryptoBoost website, also said he transferred his cryptocurrencies before the restrictions began.
Others kept funds on Binance after the company described the situation as temporary. Cryptoast reported that Binance saw about $1.6 billion in net outflows over the past month, while still holding around $114 billion in crypto assets.
Regulated rivals pushed services before the deadline, and USDT was affected too
At the same time, crypto.news reported that Coinbase and OKX promoted regulated services to eligible European users ahead of the MiCA cutoff. The regulatory shift also extended beyond exchange licensing. Because Tether did not seek MiCA authorization, USDT was removed from order books on regulated European exchanges.
For now, Binance customers in the affected countries can still withdraw digital assets. Trading services will remain offline until the exchange secures MiCA approval.