Binance Gets French Connection Cut: MiCA License Miss Halts Trading, Users Can Only Withdraw 🪙

Binance, the world’s largest crypto exchange, has suspended crypto trading services in France after failing to secure a Markets in Crypto-Assets (MiCA) license from French regulator AMF, according to BFM Business. French users can now only withdraw their crypto assets, with user funds confirmed to remain safe. The exchange previously served about 2 million users in France, offering spot, futures, margin, and custody services.

The France suspension follows Binance’s missed deadline for obtaining an MiCA license across the European Union and follows a similar regulatory roadblock in Greece. Binance also halted services across several other EU countries beginning July 1. The exchange had been in discussions with AMF ahead of the regulatory transition.

The operational changes are mirrored by capital movement on the platform. Binance reported net withdrawals of about $1.6 billion over the past month, though the exchange still holds approximately $114 billion in crypto assets. Industry data from DeFiLlama shows rival platforms absorbing displaced liquidity, with Kraken providing about $431 million in spot liquidity across 1,703 markets, Coinbase offering nearly $347 million across 1,073 markets, and Crypto.com providing roughly $131 million.

Affected European users are reportedly moving assets either to MiCA-licensed Virtual Asset Service Providers or to self-custody wallets. Kraken, Coinbase, and Crypto.com are among the regulated exchanges seeing increased trading volumes as a result. Future licensing approvals will determine whether trading activity returns to Binance or whether MiCA-licensed competitors continue to capture European market share.