In a significant move affecting its European clientele, Binance has begun notifying users in France, Spain, Poland, and Italy about the impending closure of their accounts, which is set to occur on December 31, 2026. This action is a direct consequence of the European Union’s Markets in Crypto-Assets (MiCA) regulations, which have imposed strict licensing requirements on cryptocurrency exchanges operating within its jurisdiction.
Starting November 29, affected users will face an additional monthly fee of 0.025% of their remaining account balance or a minimum charge of 10 USDC—whichever is higher. This fee structure is being introduced as Binance prepares to wind down operations in these markets, and users are being urged to withdraw their cryptocurrency assets before the deadline.
Deposits into accounts have already been blocked, while withdrawals remain open, allowing users a narrow window to retrieve their funds. Those who empty their accounts before November 29 will avoid incurring any fees, a crucial detail for users looking to sidestep additional costs.
Understanding the Fee Structure
The fee implementation is set to begin shortly after November 29, with the first charges taken within three days of the date. A second fee will be assessed after December 24, with the deductions coming first from USDC holdings, followed by other cryptocurrencies if necessary. Notably, any account with less than the requisite fee will have its entire balance deducted, emphasizing the urgency for users to act quickly.
This fee system is particularly concerning for smaller account holders, as even minor balances could result in losses amounting to 20 USDC across the two charges. Binance has indicated that any assets remaining in accounts after the closure date will be classified as inactive, potentially leading to further conversions or transfers.
Reasons Behind the Closures
The account closures are a direct result of the expiration of the MiCA transition period, which concluded on June 30, 2026. Under these new regulations, cryptocurrency exchanges are required to obtain authorization from at least one EU member state to continue serving customers across the bloc. Binance, which previously withdrew its application for a license in Greece, has not disclosed its new target jurisdiction and remains unlisted in the European Securities and Markets Authority’s register of authorized crypto providers.
As a result of the licensing requirements, more than 50 cryptocurrency providers were removed from the register on July 2, and Binance France’s registration, valid since May 2022, was also noted as lapsed from that date. Consequently, users in France and other affected EU countries have lost access to spot, margin, and futures trading, although they retain the right to withdraw their funds. Approximately 2 million customers in France alone are estimated to be impacted.
Adding to the urgency, recent reports from TRM Labs indicated that only 281 of the 1,343 crypto providers have successfully secured authorization under MiCA—leaving many users uncertain about the future of their investments. This comes on the heels of Binance revealing a significant $6.3 billion hack in late October, which has further complicated the exchange’s standing among its user base.
With the first fee deadline fast approaching, users are left with just weeks to safeguard their assets and navigate the increasingly complex landscape of cryptocurrency regulation in Europe.
