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Binance: judge MiCA by who it licenses

Binance publicly responded to reports that ESMA had informally urged regulators to reject its MiCA applications, arguing MiCA should be judged by who it licenses, not who is excluded. After withdrawing its Greek application, Binance stopped most services to EU clients from 1 July; withdrawals stay open. What it means for Baltic and Nordic users and why moving to a licensed platform in good time matters.

Toms Ābeltiņš

5 July 20267 min read

Binance publicly reacted to media reports that the European Securities and Markets Authority (ESMA) had informally urged national regulators to reject the exchange's MiCA applications. The concerns relate to Binance's AML history and whether co-founder Changpeng Zhao (CZ) meets MiCA's fit-and-proper standard. Binance's position: MiCA should be judged by who it licenses, not who is excluded. In practice, after withdrawing its Greek application (24 June), Binance stopped most services to EU clients from 1 July (new orders, deposits, Earn), while withdrawals stay open and assets remain safe. Binance plans its next attempt in France. We cover the facts, the MiCA context and what it means for Baltic and Nordic users - a reminder to move to a licensed platform in good time.

What happened

The most visible regulatory event of recent days was Binance's public response to media reports that the European Securities and Markets Authority (ESMA) had informally urged national regulators to reject the exchange's MiCA applications. Binance's central argument: MiCA should be judged by who it licenses, not by who is excluded from the market.

The reaction followed a chain of events that peaked in late June: after withdrawing its application in Greece, Binance stopped offering most services to EU clients from 1 July 2026. Withdrawals remain open.

What the reports said

According to several media reports, ESMA privately advised national regulators to reject Binance's MiCA applications. The concerns cited centre mainly on two issues:

Binance's anti-money-laundering (AML) history - including prior settlements with US authorities;
the role of co-founder Changpeng Zhao (CZ) in the company and whether he meets MiCA's "fit and proper" standard, which applies to an applicant's management and ownership.

The concrete turning point came in Greece: the Hellenic Capital Market Commission (HCMC) was preparing to reject the application, and on 24 June 2026 Binance formally withdrew it, saying it would seek authorisation in another EU member state.

Binance's response

Binance's public position is that a regulation's success should be measured by the quality and number of companies it licenses, not by who is excluded. The company stresses that it continues to work on compliance and says it is confident it will secure an EU licence in the coming months. Binance plans its next licensing attempt in France.

At the same time, critics point to a tension: Binance's French entity also stopped accepting new clients and providing crypto-asset services from 1 July, so the practical timeline for a "next attempt in France" is not yet clear.

What actually changes for EU users

The practical situation for EU users after 1 July is as follows:

Suspended: new spot orders, deposits, new account sign-ups, and Earn and staking products for EU clients;
Still open: withdrawals - Binance says assets remain safe and accessible;
Background: MiCA required crypto-asset service providers to obtain a licence in an EU member state by 30 June 2026; Binance did not meet that deadline.

Importantly, this is not a sudden "freezing of funds". It is a suspension of service for new transactions, while withdrawals remain possible. But for users who rely on Binance for day-to-day trading or Earn products, it means a real loss of service.

The MiCA context

MiCA (Markets in Crypto-Assets) took effect in 2024, and the transition period for most exchanges ended on 30 June 2026. The regulation requires not only technical compliance but also that a provider's management and owners meet the "fit and proper" standard. It is precisely this criterion - combined with the AML history - that became the main obstacle in Binance's case.

The situation illustrates that MiCA is not just a formality: even the world's largest exchange by volume can be shut out of the EU market if regulators consider that governance and compliance requirements have not been met.

Impact on Baltic and Nordic users

For Baltic and Nordic users who have not yet moved to licensed platforms, this story is a reminder to do so in good time. Several MiCA-licensed alternatives are available in the region:

Latvian MiCA CASPs (nine licences since the regime began) - including Paybis, Neverless, Backpack EU, and the recently licensed Hodleris SIA and Bleap SIA;
Bitvavo (Netherlands), Kraken EU (Ireland), Coinmotion and Northcrypto (Finland), Safello (Sweden), Firi (Norway) and other regionally available licensed exchanges.

The key practical recommendation: do not stay on a platform that is losing the right to provide services in the EU, and move assets to a regulated, MiCA-licensed alternative while withdrawals remain open.

What to do now

For users affected by the Binance changes, the practical steps are:

Check whether the products you use (spot, Earn, staking) still work in your jurisdiction;
If you plan to move, do it while withdrawals are open rather than waiting until the last moment;
Choose a MiCA-licensed platform with a clear regulator and an EU passport;
Keep your transaction history for tax reporting, since changing platforms does not change your tax obligations.

The bigger picture

The Binance case is the most visible test of MiCA enforcement so far. It sends a signal to the market: EU regulators are willing to deny access even to the largest players if governance and AML requirements are not met. At the same time, Binance's argument - that the value of a regulation lies in the ecosystem of licensed companies, not in exclusion - reflects a broader debate about how to balance market openness and consumer protection.

Regardless of how Binance's attempt in France ends, the short-term takeaway for Baltic and Nordic users is practical: in the MiCA era, the safer choice is a platform with a real EU licence.

Norriwire Briefing