Binance sees $1.2 billion outflows and halts trading in France after missing MiCA license

Binance recorded a net outflow of about $1.23 billion in the week beginning 29 June, a 207 % increase from the prior week, and monthly outflows of roughly $3.2 billion. The surge coincided with a three‑year high in Ethereum withdrawals from the exchange, with more than 166,000 ETH withdrawal transactions reported in a single day.

Analysts linked the activity to the European Union’s Markets in Crypto‑Assets (MiCA) framework, which entered full force on 1 July and requires crypto firms to hold a licence to operate across the bloc. Binance failed to secure a MiCA licence in time, withdrew its Greek licence application and consequently stopped offering crypto‑trading services in France and other EU countries, including Poland, Italy and Spain, from 1 July. The exchange said user funds remain safe and that the changes are temporary while it works toward compliance.

The outflows were the largest among tracked exchanges, while other platforms saw mixed flows. Bitcoin rose about 5 % in the same period. Binance’s move highlights regulatory pressure on major crypto venues in Europe and may reshape liquidity for retail traders in the affected markets.