Binance to cut services for some EU users after withdrawing regulation application

Cryptocurrency exchange Binance has told some European Union that services will be affected after it withdrew an application for European Union regulation via Greek authorities.

All crypto asset businesses have to obtain a license under the bloc's Markets in Crypto-Assets Regulation by July 1, or risk penalties. The company told CNBC in a statement that it will pursue an authorization in another EU member state.

Binance also told CNBC that "we will take the necessary steps before 1 July to remain compliant with applicable requirements." Some users may be impacted, but the exchange would communicate with them to provide clear information on next steps and is confident that it will be able to secure a license "in the coming months," the statement said.

According to a Financial Times report on Friday, the exchange's application for a bloc-wide license in Greece failed last week, and the exchange now intends to apply for a license in France, but any approval is likely to come well after the July 1 deadline.

Binance customers in Poland, Italy, Spain and France — where the company currently holds local licenses — have received emails this week telling them how to withdraw their money from the exchange, the FT reported.

Some EU-licensed rivals have been trumpeting their services following the development, including Eric Demuth, founder of Bitpanda.

"While others optimized for speed, we optimized for trust....You can like Europe's regulatory approach or not, but the reality is that the EU values regulation and consumer protection. As a European company, we understood that from day one and built accordingly...If you've never tried Bitpanda, now is a good time," Demuth wrote on X.

Star Xu, founder of OKX, also posted on X about his company's "trustworthy crypto and fintech services".

Binance had faced a number of investigations and criminal charges in recent years. The company has been banned in the UK since 2021.

In 2023, Binance pleaded guilty to criminal charges related to money laundering and breaching international financial sanctions, resulting in more than $4.3 billion in penalties being paid to U.S. authorities.

Last year, French officials opened a judicial investigation into Binance, stating it was likely to have assisted in money laundering. Binance denied the allegations.