Spain Draws a Hard Line: No MiCA Extensions as Binance's European Clock Ticks Down ⏰

Spain will not extend the July 1 deadline for cryptocurrency firms to register under the European Union's new Markets in Crypto Assets (MiCA) framework, the chairman of the country's National Securities Market Commission said Friday. Carlos San Basilio told Reuters there will be "no exceptions or extensions" to the cutoff, even as major platforms face imminent shutdowns for failing to secure licenses in time. Firms that have not registered with an EU member state by next Wednesday must cease operations, and European customers will be unable to complete transactions with unauthorized crypto service providers after that date.

Binance, the world's largest crypto exchange, withdrew its MiCA license application from Greece this week after the Hellenic Capital Market Commission signaled the bid would be rejected. The firm said it is now pursuing registration in another EU member state but is likely to be forced to wind down operations in Europe, at least temporarily, once the deadline passes. San Basilio said he and other regulators are in contact with major crypto companies that have not yet secured licenses to ensure they have plans to transfer client assets to other providers and protect investor rights.

Once a crypto firm registers in an EU country, it can "passport" its license to operate across the bloc. Member states retain discretion over how they process applications, ranging from more hands-off jurisdictions like Cyprus and Malta to stricter regimes in France and Germany, but all enforce the same broader MiCA ruleset.

Separately, Seychelles-based crypto exchange CoinEx on Thursday denied allegations from a Wall Street Journal report, which leaned on analysis from blockchain analytics firm TRM Labs, that it knowingly processed billions of dollars in sanctioned Iranian funds. CoinEx pushed back against the claims, though the firm did not provide specifics on its compliance procedures in its public response.