Binance Faces £150M UK Lawsuit as MiCA Licensing Challenges Deepen in Europe

Binance and its co-founder Changpeng Zhao (CZ) are facing renewed legal and regulatory pressure in Europe as the cryptocurrency exchange confronts a major lawsuit in the United Kingdom while adjusting its licensing strategy under the European Union’s Markets in Crypto-Assets (MiCA) framework.

A group of 1,692 British investors has filed a claim against Binance in the UK High Court, seeking damages of up to £150 million (approximately $171 million). The lawsuit alleges that the crypto exchange offered leveraged cryptocurrency derivatives to retail investors in 2019 and 2020 without the necessary authorization required under the UK's Financial Services and Markets Act.

According to the legal filing, the claimants argue that Binance’s allegedly unauthorized products caused significant financial losses. The lawsuit states that many investors lost substantial amounts, with some reportedly losing tens of thousands of pounds and others suffering losses worth millions. One claimant, London resident Tomas Sutas, is reported to have lost more than $100,000 through Binance’s derivatives products.

Hannah Sharp, a partner at KP Law representing the investors, said the case seeks accountability for what she described as years of limited consumer protection in cryptocurrency markets. She stated that many of the affected investors committed significant personal savings and suffered serious financial harm, adding that the legal action aims to ensure greater accountability within the digital asset industry.

Binance declined to comment on the specifics of the ongoing litigation but said it intends to defend itself through the appropriate legal process. The company reiterated its commitment to complying with applicable laws and meeting its obligations to users.

The legal challenge comes as Binance continues to navigate Europe's evolving regulatory landscape. The exchange recently confirmed that it withdrew its application for a MiCA license in Greece after reviewing the country's regulatory process and timeline. Instead, Binance is pursuing authorization in another European Union member state.

In a statement, Binance said the decision was made after careful consideration and with users' interests in mind. The company emphasized that its long-term strategy in Europe remains unchanged and expressed confidence that it will obtain a MiCA license in the coming months.

Binance acknowledged that the licensing transition could affect some customers and said impacted users will receive direct communication explaining any necessary next steps.

The exchange also reaffirmed that Europe remains one of its most important markets. Binance said it plans to continue expanding its presence across the region under the EU's harmonized MiCA regulatory framework, which officially became fully operational on July 1. As regulatory scrutiny intensifies across Europe, the outcome of both the UK lawsuit and Binance's licensing efforts could play a significant role in shaping the exchange's future operations in the region.