Binance France Plans Account Shutdown and Monthly Fees for Users Holding Assets

Binance France Account Operations Cessation

Binance France has announced a cessation of all customer account operations scheduled for December 31, 2026. Starting November 29, users who maintain assets in their accounts will incur monthly management fees.

Customer Notifications and Account Closure

Reports emerged on November 6 that Binance began notifying customers via email, informing them that deposits would no longer be accepted and that all accounts would be forcibly closed by the aforementioned deadline. The correspondence highlighted the orderly wind-down of activities and clarified that failure to withdraw crypto assets by the cut-off date would result in accounts being deemed inactive.

Monthly Management Fees

The communication from Binance France indicated that this transition could involve the conversion or handling of assets per the updated terms of service. To discourage its users from leaving their accounts idle, Binance France will impose a monthly fee of 0.025% of the account balance or a minimum charge of 10 USDC, whichever amount is greater. The initial fee will be deducted shortly after November 29, with a subsequent charge expected after December 24.

Notably, holders of smaller amounts may find themselves paying the flat fee of 10 USDC, amounting to a total of 20 USDC over the two billing cycles.

Fee Deduction Process

The fees are applied first against any USDC in the accounts before impacting other cryptocurrencies. In the event the account balance is insufficient to cover the fee, Binance will deduct whatever funds remain. However, customers can avoid these charges entirely by withdrawing their funds before the designated fee calculation day on November 29.

Regulatory Context and Market Impact

This development is part of a broader trend influenced by the European Union’s Markets in Crypto-Assets (MiCA) regulation, which becomes effective for cryptocurrency service providers by June 30, 2026. Following this, Binance chose to withdraw its application for a license in Greece and announced a scaling back of its operations across the EU from July 1.

After the regulatory changes took effect, users in France and other EU nations lost access to trading options like spot, margin, and futures, although they still retain the right to withdraw their funds. It is estimated that nearly 2 million customers in France are impacted by these changes. Competing platforms like Coinbase and OKX have taken the opportunity to market services to these affected users.

Market Contraction and User Response

Further scrutiny of the crypto service sector reveals that as few as 281 out of 1,343 providers achieved the necessary authorization under MiCA, highlighting a significant contraction in the market, with roughly 80% of European firms failing to comply. The announcement of account closures coincides with continued turmoil at Binance following a high-profile $6.3 billion hack announced on October 29. In the wake of this breach, user withdrawals soared, leading to net outflows of 25,793 bitcoin, roughly valued at $3.6 billion, marking the largest withdrawal event in over a year.

Future of Binance in the EU

As the deadline approaches, many users from Binance France are likely to shift their holdings to self-custody wallets or MiCA-licensed exchanges to evade the impending fees. The future of Binance in the EU remains uncertain, as discussions surrounding potential licensing options continue, with France actively advocating for its stance on MiCA. As it stands, French customers have a little over three weeks left to withdraw their assets before incurring charges.