Spain Regulator Carlos San Basilio Rejects MiCA Deadline Extensions for Binance and Other Firms

Spain’s National Securities Market Commission chair Carlos San Basilio said there will be no extensions or waivers for crypto firms that did not receive approval to operate in European Union member states under the Markets in Crypto-Assets (MiCA) framework by July 1.

“PiCK Spain Rules Out MiCA Deadline Extension, Tightens Pressure on Unlicensed Crypto Platforms Summary - Spain’s financial regulator said there will be no exceptions or extensions to the deadline for obtaining an EU MiCA license”

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Reuters reported San Basilio said “there will be no exceptions or extensions” to the July 1 MiCA deadline, referring to Binance and other cryptocurrency exchanges affected by the framework.

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Under MiCA, firms have until July 1 to register with a member country and remain operational, and if they fail to register by next week they will be obligated to cease doing business.

The same Reuters reporting said Binance’s operations in the EU are expected to scale back after it withdrew its application with Greece’s Hellenic Capital Market Commission and had not received approval from any other authority as of Friday.

Cointelegraph also quoted San Basilio saying “there will be no exceptions or extensions” to the July 1 MiCA deadline, and said Binance would be required to halt onboarding of new EU-based users and limit certain services for EU-based accounts starting on July 1 if it fails to secure approval in time.

In response to former Binance CEO Changpeng “CZ” Zhao’s comments on the exchange’s EU deadline, OKX founder and CEO Mingxing Xu said, “They ignore laws and regulations, while misleading the public with bullshits.”

Cointelegraph reported Xu’s criticism added that, “According to public media reports and court filings, the platform’s so-called ‘best liquidity’ included trading activity associated with risks involving money laundering, sanctions violations, and market manipulation.”

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The Reuters-based reporting described Binance as still unlicensed after withdrawing its application in Greece, and said regulators are working with unlicensed firms to ensure customer assets can be transferred if needed.

Decrypt said European customers will not be able complete transactions with unauthorized crypto service providers after next week, and that Binance may have to temporarily halt EU operations when the clock runs out next Wednesday.

TradingView’s Reuters-cited account added that if Binance fails to secure approval from a financial regulator in the next few days, it will be required to halt the onboarding of new EU-based users and limit certain services for EU-based accounts starting on July 1.

Spain’s regulator said it is in close contact with companies that have not obtained authorisation, and that the priority is to ensure customers are protected during the transition.

“Photo: Sam Williams/Unsplash Spain rejects MiCA deadline extensions for unlicensed crypto firms Spain's firm stance on MiCA compliance may drive unlicensed crypto firms to exit or adapt, impacting market dynamics and investor security”

Crypto Briefing

ETLegalWorld quoted San Basilio saying “there will be no exceptions or extensions” to the deadline, and said the regulator is in close contact with firms that have not obtained authorisation to ensure an orderly wind-down of operations.

Decrypt said regulators are coordinating with major crypto companies to ensure plans are in place to transfer client assets to other providers and ensure investor rights.

ETLegalWorld added that investors will not be able to carry out new transactions with unauthorised platforms and would not benefit from MiCA protections if they do so, and that enforcement is down to each individual member state.

TradingView’s Reuters-cited account said Binance’s expected EU scaling back could have a far greater impact on the region’s crypto market because Binance has millions of users in the EU, while other crypto exchanges secured last-minute approvals under MiCA.