Binance has failed to obtain a license under the bloc’s new framework regulating the industry Binance has announced plans to temporarily suspend services to its customers in the European Union starting next week. The crypto exchange, which is the world’s largest by trading volume, has so far failed to secure authorization under the bloc’s new licensing regime.All crypto-asset service providers are obliged to get a license under the Markets in Crypto-Assets Regulation, known as MiCA, by July 1, or risk penalties. Adopted in 2023 and rolled out in stages from 2024, the legal framework aims to reduce the risks of market abuse and financial crime, protect consumers and investors, strengthen oversight of the sector, and replace fragmented national regulations with a single set of rules.The move comes after years of regulatory scrutiny of Binance. French authorities are continuing an investigation into the exchange, while co-founder and former Chief Executive Changpeng Zhao pleaded guilty in the United States in 2023 to anti-money-laundering violations and served a four-month prison sentence the following year.Binance withdrew its MiCA license application in Greece on Wednesday and said it would apply in another EU country. However, any new application is unlikely to be approved before July 1. The exchange will not be able to serve European customers until it receives the necessary license.The Financial Times reported on Friday that customers in Poland, Italy, Spain, and France, where Binance currently operates under local licenses, had received emails earlier this week explaining how they could withdraw their assets due to the halt of operations. Read more Trump pardons Binance founder The company noted it was contacting affected users directly and that their assets remained safe and secure. Binance added it was confident it would obtain a MiCA license in the coming months and would announce the member state through which it planned to operate once the authorization process was complete.MiCA is widely seen as the world’s first comprehensive regulatory framework for crypto-assets covering an entire common market. While the regulation is designed to harmonize crypto regulation across the EU, analysts and industry participants have raised concerns about uneven implementation across member states, reliance on national regulators for licensing decisions, and the risk of market consolidation as smaller firms struggle to meet compliance costs.Meanwhile, governments around the world have increasingly moved to regulate the fast-growing crypto sector, although approaches vary widely. China has effectively banned cryptocurrency trading and mining, while the US and the UK are currently developing broader regulatory frameworks. Russia allows ownership and trading of cryptocurrencies but bans their use for domestic payments, while it has gradually expanded rules governing mining and cross-border settlements.