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Spain regulator rules out extension for non-MiCA compliant crypto companies
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- DeepHorus
Spain's top securities regulator has firmly ruled out any extensions or exceptions for cryptocurrency companies that fail to secure approval under the European Union's Markets in Crypto-Assets (MiCA) framework by the July 1 deadline. Carlos San Basilio, chair of the Spanish National Securities Market Commission (CNMV), stated unequivocally that 'there will be no exceptions or extensions' to the deadline, according to a Reuters report published Friday. This announcement directly impacts major exchanges like Binance, which have not yet received a license to operate in any EU member state, signaling a strict enforcement of the new regulatory regime.
The MiCA framework, which came into full effect on July 1, requires all crypto asset service providers (CASPs) serving EU-based users to be licensed by a competent authority in at least one member state. Binance, one of the world's largest cryptocurrency exchanges, withdrew its application with Greece's Hellenic Capital Market Commission and as of Friday had not secured approval from any other EU regulator. The company faces a forced scale-back of its EU operations, including halting the onboarding of new customers and limiting certain services for existing EU-based accounts starting July 1.
San Basilio emphasized the regulator's proactive stance, stating, 'What we are concerned about, however, is how this period — the end of the transitional period — will unfold, and how the adaptation to the new environment will take place; that is why we are in contact with the organisations that have not been granted a licence.' While several other crypto exchanges have secured last-minute approvals under MiCA, Binance's millions of EU users could face significant disruption, potentially affecting market liquidity and user confidence across the region.
The implications for Binance are particularly severe given its dominant market share in the EU. Should the exchange fail to secure regulatory approval in the coming days, it must comply with the MiCA mandate or risk enforcement actions. This development may push European users toward compliant alternatives such as Kraken, which holds a Crypto Asset Service Provider license through the Central Bank of Ireland. Reddit users have already begun discussing migrations, with many citing Kraken as a preferred platform for their funds.
Reactions to Binance's predicament have been sharply critical from competitors. OKX founder and CEO Mingxing Xu remarked, 'This is Binance’s philosophy of doing business. They ignore laws and regulations, while misleading the public with bullshits.' Xu referenced public reports and court filings linking Binance's trading activity to risks involving money laundering, sanctions violations, and market manipulation. Binance's spokesperson declined to comment further, directing Cointelegraph to a previous company statement.
Looking ahead, the regulatory landscape for crypto in the EU is set to become more stringent as the transitional period ends. Regulators like the CNMV are monitoring the adaptation process closely, ensuring a level playing field for licensed entities. For Binance, the lack of a MiCA license could lead to a prolonged absence from the EU market, potentially reshaping the competitive dynamics. The broader industry will watch how other non-compliant firms respond, as the MiCA framework establishes a precedent for global crypto regulation.
