Binance blocking SEPA withdrawals in the EU with no regulatory basis — only offering P2P as “alternative”

I needed to share a problem which will affect different EU users, particularly those counting on SEPA transfers for fiat on/off‑ramps.

I deposited EUR to Binance by way of SEPA without any problems. Full KYC, verified bank account, every little thing clear and compliant. But once I tried to withdraw the same funds back to my checking account, Binance refused the SEPA withdrawal.

Their rationalization:

No regulatory basis. No AML/CTF justification. No documentation. Just “inner insurance policies” — regardless that the SEPA deposit was accepted without situation.

As an alternative, Binance informed me the solely method to withdraw my fiat is to:

1. Convert EUR → USDC
2. Sell the USDC by way of Binance P2P
3. Receive money from a personal particular person’s checking account

This is not a regulated withdrawal technique. It adds counterparty danger, breaks AML traceability, and pushes users right into a channel that isn't equal to a SEPA payout. It additionally shifts all duty to the client.

For an trade working underneath the MiCA framework, this is extraordinarily questionable. EU rules require clear, traceable dealing with of customer funds. Blocking a SEPA withdrawal whereas accepting a SEPA deposit — and not using a regulatory purpose — just isn't suitable with these obligations.

I’ve filed a grievance with my national MiCA supervisory authority so they can evaluate Binance’s conduct. If others within the EU are experiencing the identical difficulty, it could be value reporting it as properly. Regulators can only act in the event that they see a pattern.

Has anybody else run into this just lately?