Binance closes accounts in four EU countries: users must withdraw crypto by December 31

The world's largest cryptocurrency exchange, Binance, has announced the cessation of customer service in Spain, Italy, France, and Poland. The reason is the company's lack of a valid operating license in the European Union in accordance with the Markets in Crypto-Assets (MiCA) regulations. Users in the specified four countries received notifications demanding they close their accounts and withdraw their cryptocurrency by December 31. According to a Binance representative cited by CoinDesk, the exchange is «gradually restricting certain services for affected users» following the conclusion of the transition period set by EU regulators.

What will happen to account balances and what are the deadlines

Starting November 29, Binance will begin monthly fees for users in the affected countries amounting to 0.025% of their cryptocurrency balance or 10 USDC — whichever is higher. The first deduction will be made within three days after November 29, and the second after December 24. Accounts with a balance lower than the fee amount will have their entire remaining balance deducted. Thus, users effectively have a limited window to independently withdraw their assets before the end of the year, after which funds will begin to be «eaten up» by automated deductions.

Regulatory context: what is MiCA and why registration expired

The MiCA regulation, adopted by the European Parliament and the Council of the EU, requires cryptocurrency exchanges to obtain authorization in one of the member states of the block to legally service clients across the entire union. The French financial regulator — Autorité des marchés financiers (AMF) — noted that Binance France's registration, which had been valid since May 2022, automatically expired on July 2. It was in June that Binance first contacted users in France, Spain, Italy, and Poland, urging them to close their accounts. These four countries are where the company operated a locally registered business until the end of the MiCA transition period. At the time of publication, the company has still not been added to the registry of authorized crypto asset service providers by the European Securities and Markets Authority (ESMA).

Binance's path to a European license: from the Greek application to a new plan

In June of this year, Binance withdrew its application for a Greek MiCA license. At the same time, the company stated that it plans to obtain approval in another EU member state, the name of which was not disclosed at the time of publication. «Our commitments to Europe remain unchanged, and we are actively advancing in the authorization process,» a exchange representative said. Thus, formally the company is not abandoning the European market, but effectively deprives users in four countries of access to the service until it completes the licensing procedure in a jurisdiction that will grant it a «passport» for the entire block.

Cyberattack and capital outflow: the backdrop of the EU exit

The decision to close accounts in four European countries comes against the backdrop of a serious cybersecurity incident. In late October, Binance suffered a cyberattack resulting in hackers stealing $6.3 billion in assets. The US Federal Bureau of Investigation blamed hackers from North Korea for the attack. The company promised to cover the losses from the hacking attack on its own. According to Binance, about 95% of the lost assets have already been returned to users. The highest client activity for withdrawals occurred in the first hours after the platform again allowed crypto asset withdrawal operations. The combination of regulatory pressure and the consequences of the cyber incident creates a double challenge for the exchange: on the one hand, the need to bring infrastructure into compliance with MiCA, and on the other, restoring the trust of users who lost billions of dollars in a matter of hours.

What this means for users and the market

For private investors in Spain, Italy, France, and Poland, the practical meaning of the notification boils down to one thing: by December 31, they must complete the withdrawal of cryptocurrency and close their account, otherwise the mechanism of monthly deductions will take effect. For the broader market, Binance's decision underlines that the MiCA transition period is effectively exhausted, and large platforms that have not obtained a license are losing access to European clients. This creates a precedent for other exchanges that are also not included in the ESMA registry and increases pressure on regulators to accelerate the review of licensing applications.