French clients of Binance are discovering that walking away from the world’s largest crypto exchange is far less smooth than joining it. According to a report by French outlet BFMTV, users who chose to move their holdings off the platform after it lost the right to operate in France have run into a mix of verification hurdles, transfer bottlenecks and a distinct feeling that they were left to figure the process out alone.
The exodus follows Binance’s confirmation to its French clients that, from July 1, 2026, its French entity would no longer provide crypto asset services in the country, after the group failed to obtain a license under the EU’s Markets in Crypto-Assets (MiCA) framework by the transition deadline of June 30, 2026.
From PSAN Registration to a Hard Regulatory Cliff
Binance had long operated in France under the country’s PSAN (Prestataire de Services sur Actifs Numériques) registration, granted by the AMF in 2022. That legacy status was scheduled to be superseded by MiCA once the transition period expired on June 30, 2026.
The exchange initially bet on Greece as its EU gateway, filing a MiCA license application through the Hellenic Capital Market Commission in January 2026. On June 24, however, Binance withdrew that application, days after reports emerged that the regulator was leaning towards a rejection. Concerns reportedly centred on the exchange’s anti-money-laundering history and the “fit and proper” test applied to majority owner Changpeng Zhao.
That withdrawal is what triggered the practical fallout for French users. As The Crypto Times previously reported, Binance told clients across France, Italy, Poland and Spain that new spot orders, deposits, sign-ups and Earn products would be halted from July 1, while withdrawals would remain open.
“You Sort It Out Yourself”
While Binance has repeatedly stressed that user assets “remain safe and secure” and accessible at all times, several French users told BFMTV that the reality on the ground has been less reassuring.
The overriding sentiment described in the report is that customers were essentially left to sort out the migration themselves, with limited guidance on which regulated alternatives to use, how to handle staking positions, or how to deal with delayed KYC checks on receiving platforms.
Some reported extended waits on identity verification with new exchanges, slow processing on stablecoin transfers, and stress around navigating self-custody wallets for the first time. Others flagged confusion over which of their positions could actually be withdrawn, which had to be converted to EUR or USDC first, and which were tied up in Earn, staking or lending products that follow a separate wind-down calendar.
For users still holding open positions in margin, Binance Loans or Flexible Loans, the exchange has set a second deadline of October 1, 2026, after which those positions will be automatically closed or liquidated. Binance has urged affected clients to settle those positions themselves to avoid forced liquidation.
Assets Safe, but Timing Adds Pressure
The European Securities and Markets Authority (ESMA) has separately urged retail users of unauthorised crypto-asset service providers to move their assets to a licensed CASP or a self-custody wallet, warning that customers of unlicensed platforms do not benefit from MiCA’s consumer protections around asset segregation and complaint handling.
Of more than 3,000 crypto firms previously registered across the EU, only around 250 have secured full MiCA authorisation, a clearance rate near 7%. Binance is the most prominent name on the wrong side of that filter. Meanwhile, ESMA’s most recent register update added 37 more licensed firms, including Standard Chartered and FalconX, bringing the total to 280 authorised CASPs.
Licensed players such as Coinbase (Luxembourg), Kraken (Ireland), OKX (Malta), Bitpanda and Bybit EU (Austria) are all positioned to absorb displaced Binance users, and several have already rolled out targeted campaigns aimed at French residents. DefiLlama has also launched a MiCA compliance dashboard to help users verify which venues are authorised.
France as the Next Bet, but Not Without Baggage
Binance now plans to apply for MiCA authorisation through France’s AMF, where it already holds a pre-MiCA digital-asset registration that the exchange believes could ease the process. Co-CEO Richard Teng has said the company remains “dedicated to securing our MiCA license” and expects to obtain one “in the coming months.”
The obstacles, however, are non-trivial. Any French license is likely to arrive well after July 1, leaving a service gap for existing EU customers. On top of that, French authorities opened a judicial investigation into Binance last year over suspected assistance with money laundering, aggravated money laundering, laundering linked to drug trafficking and illegal exercise of digital asset service provider activity. The company has denied the allegations.
That national context sits alongside a broader compliance track record that continues to shadow Binance’s European ambitions, including the $4.3 billion settlement reached with US authorities in 2023 and Changpeng Zhao’s subsequent guilty plea and four-month prison sentence.
The Bigger Picture
For French crypto holders, the immediate task is practical rather than existential. Assets are not being seized or frozen, but access to Binance’s trading, staking and loan products in the country has ended, and any orderly wind-down is now unfolding under a firm October 1 deadline for leveraged positions.
The broader message from Europe is clearer than ever. As The Crypto Times noted when MiCA officially took effect on July 1, the EU’s post-PSAN era is no longer a promise on paper. It is a live filter, and even the largest exchange in the world has been caught on the wrong side of it.
Also Read: Binance Calls for MiCA to Be Evaluated by Adoption Rather Than Exclusions
