- The European Union’s Markets in Crypto-Assets Regulation (MiCA), designed to harmonize crypto-asset laws across the bloc, has left 92% of crypto platforms outside the new regulatory framework
- Binance is among the platforms that lost access to the European market. In Spain alone, more than 600,000 users now face a choice: migrate to another provider, withdraw their funds, or move to self-custody
On July 1, the transitional period for MiCA officially ended across the European Union, triggering a major reshaping of the continent’s crypto landscape. Of the more than 3,000 providers that had been operating under national registration regimes, only 244 secured full MiCA authorization, according to figures reported by multiple media outlets. That represents a 92% reduction in the number of eligible platforms.
The law firm Hogan Lovells had forecast a similar outcome, estimating that roughly 75% of operators active before MiCA would lose their status once the transition period ended.
Among those excluded, the most notable case is the world’s largest crypto exchange.
Why Binance Was Left Out
Binance submitted its MiCA license application in January through a Greek subsidiary. On June 24—just six days before the deadline—it withdrew the application after Reuters reported that Greece’s regulator was preparing to reject it.
Binance’s account of the situation differs somewhat from reports in specialized media. According to CoinCentral, The Wall Street Journal reported that the European Securities and Markets Authority (ESMA) had privately encouraged national regulators to halt Binance’s applications due to concerns related to the company’s compliance history in financial crime prevention.
ESMA declined to comment on specific cases but confirmed that it is working with national authorities to ensure consistent enforcement of MiCA across the bloc.
That compliance history is significant. In 2023, Binance pleaded guilty to violating U.S. anti-money laundering and sanctions laws and agreed to pay a $4.3 billion fine. Its founder, Changpeng Zhao, also pleaded guilty to a related charge and served four months in prison before receiving a presidential pardon last November.
The company is also facing an ongoing criminal investigation in France, while regulators in Greece, Ireland, and Latvia have reportedly raised concerns about Binance’s corporate structure, according to the Financial Times.
Zhao offered a different interpretation, stating that two EU countries were prepared to grant Binance a license but that “other forces” intervened, without providing further details.
Binance maintained that its application was “complete and compliant” and criticized what it described as a process influenced by informal channels rather than a harmonized regulatory standard.
The debate intensified when Star Xu, CEO of OKX, publicly challenged Binance’s narrative on X. Xu argued that Binance preferred denying the issues rather than addressing its compliance shortcomings.
He also noted that restrictions have been applied unevenly across different markets, citing Italy, Spain, France, Poland, Belgium, and Sweden, while users in other European Economic Area countries may continue operating normally. His comments raise questions about how uniformly MiCA is actually being enforced across the region.
The Impact on Users
Since July 1, Binance has been unable to onboard new customers or provide crypto services within the European Union.
The company stated that affected users retain the options previously communicated, including withdrawals where applicable, and emphasized that customer funds remain fully backed on a 1:1 basis.
In Spain alone, more than 600,000 Binance users are expected to decide how to manage their holdings, according to research cited by iProUP.
Their options include:
- Migrating to a MiCA-authorized platform.
- Liquidating positions and withdrawing funds in fiat currency.
- Transferring assets to self-custody wallets.
Who Benefits From the New Regulatory Landscape?
The gap left by Binance is attracting competitors eager to gain market share.
Germany leads the ranking of MiCA authorizations with 55 licensed entities, followed by France and the Netherlands.
Spain currently has 21 entities authorized by the National Securities Market Commission (CNMV), a list heavily populated by traditional financial institutions. BBVA was among the first banks to obtain authorization in March 2025, followed by Cecabank, Openbank, Renta4, CaixaBank, and KutxaBank.
Among crypto-native exchanges, OKX has made particularly strong progress. According to figures cited by iProUP, the company has already obtained authorization for nine of the ten service categories covered by MiCA, positioning it to capture part of the user base left behind by Binance.
What Remains Unclear
Several questions remain unresolved beyond Binance’s specific case.
The first is whether MiCA enforcement will ultimately become truly uniform across all 27 EU member states, or whether restrictions will continue to vary by market, as suggested by OKX’s CEO.
The second concerns Binance’s next move. The company has already announced plans to submit a new application through another EU member state. Whether it can overcome the regulatory scrutiny that blocked its Greek application remains to be seen.
The third—and perhaps most structural—question is whether the concentration of market access among traditional banks and a limited number of licensed exchanges will reduce the diversity of crypto services available to European users, even as MiCA’s stated goal is to raise standards for solvency, transparency, and investor protection.