Binance freezes French crypto trading after MiCA license failure

Binance suspended trading for 2 million French users after missing the MiCA license deadline, affecting several EU countries. Withdrawals remain open, while competitors target displaced users.

Binance has suspended trading services for users in France and several other EU countries after failing to secure a Markets in Crypto-Assets (MiCA) license by the July 1, 2026 deadline. Around 2 million French users lost access to spot, margin, and futures trading, though withdrawals remain available and assets are reportedly backed 1:1. This suspension follows months of regulatory uncertainty and unsuccessful attempts to obtain authorization, including a withdrawn application in Greece after objections from European authorities. The halt also impacts users in Italy, Poland, and Spain. In the month leading up to the deadline, Binance saw $1.6 billion in net outflows, with Ethereum withdrawals reaching a three-year high. Competing exchanges like Coinbase and OKX have launched campaigns to attract displaced users. Under MiCA, crypto firms must now be licensed in at least one EU member state to serve clients across the bloc, giving approved exchanges a compliance advantage.