Binance will shutter client accounts across France, Spain, Italy, and Poland on December 31, while introducing a monthly fee on remaining funds starting November 29, because the premier global cryptocurrency exchange still lacks a valid permit under the European Union’s MiCA regulations.
A representative for Binance verified the termination date to CoinDesk over the weekend, explaining that the platform is “gradually restricting certain services for impacted users” following the conclusion of the transition window within the Markets in Crypto-Assets framework.
“Targeted accounts will be shut down effective December 31, 2026,” the spokesperson noted, characterizing the move as “a carefully controlled procedure.” Binance emphasized that user funds remain secure and accessible, describing the action as “not an abrupt freeze.”
Deposits have already been halted, though clients retain the ability to withdraw both digital assets and fiat currencies. Customers residing in the four impacted nations have posted the official alerts on X.
The fees and deadlines
Based on correspondence shared by users, Binance plans to deduct 0.025% of leftover cryptocurrency funds monthly, or a minimum of 10 USDC, depending on which amount is higher, beginning November 29. The initial fee will be applied within three days of that deadline, followed by a second deduction subsequent to December 24.
These charges are deducted from USDC balances first, before moving to other digital assets. Accounts containing less than the specified fee amount will forfeit their entire remaining balance, according to the messages. Any individual who withdraws their full balance prior to November 29 will incur no charges.
As of Sunday, Binance had not disclosed these fee specifics through a public announcement, meaning the details originate from customer notifications rather than an official press release. The company representative merely confirmed the closure timeline and the limitation of services.
The four nations share a common characteristic: Binance maintained locally registered entities in each before the conclusion of the MiCA transition period. Its initial communication with customers in those regions occurred in June, at which point it strongly advised them to withdraw their funds.
A license Binance still has not won
MiCA mandates that digital asset enterprises secure formal authorization within a single EU member nation prior to offering services throughout the entire economic bloc. Binance retracted its Greek license application in June, indicating it would pursue approval in another jurisdiction without disclosing the specific country.
At that time, Reuters reported that the Hellenic Capital Market Commission of Greece was prepared to reject the application, as reported by Bitcoin Magazine. Concurrently with the arrival of the MiCA deadline, the primary securities regulator of the European Union also instructed unlicensed cryptocurrency platforms to withdraw from the marketplace.
During that period, Binance assured users that its dedication to Europe remained steadfast. The platform is absent from the European Securities and Markets Authority roster of authorized digital asset service providers, and management has not revealed which regulatory body currently reviews its application.
These account closures take place during a particularly difficult period for the exchange. On October 29, malicious actors drained approximately $6.3 billion from Binance in a historic breach which the organization stated originated from malware embedded within software downloads and fraudulent job solicitations directed at engineers. Binance has promised to fully compensate all impacted users, prompting U.S. banking authorities to subsequently question financial institutions regarding the security breach.
Additionally, Binance announced on Saturday that Chief Financial Officer Kaiser Ng is stepping down after a tenure exceeding five years. Co-CEO Yi He mentioned in an official statement that this leadership transition had been mapped out over the past six months, with Justin Yek—previously a vice president of finance at Airwallex—stepping into the CFO role.
The Federal Bureau of Investigation has attributed the theft to a North Korean state-sponsored hacking collective, an allegation that Pyongyang has officially rejected.
The precise quantity of impacted Binance customers remains unspecified, and there are currently no indications that accounts located in Germany or other European Union member states face closure. Local reports in France indicate that accounts retaining balances past December 31 will be categorized as dormant.
Competing exchanges that already possess MiCA approvals, such as Kraken and Coinbase, stand to benefit should Binance depart, as pointed out previously in June. The ultimate test for Binance is whether it can successfully obtain a license before a greater portion of its European operations is dismantled.
Originally published at https://bitcoinmagazine.com/news/binance-closing-accounts-four-eu-countries.
