What has been happening this week in the world of blockchain and cryptocurrencies? Current events and background reports in our weekly review.
Selected articles of the week:
Binance, the world’s largest crypto exchange, will discontinue all services for EU customers as of July 1. What the exchange officially presents as a withdrawal of its MiCA license application in Greece amounts to an effective removal from the market. The company urged customers in France, Poland, Italy, and Spain to withdraw their balances before the deadline. The background is the EU’s MiCA regulation. A CASP license from one member state has applied across all 27 countries since December 2024, and a rejection therefore takes effect EU-wide. With the end of the transition period on July 1, unlicensed operation becomes illegal. Binance filed its application in January and initially passed through the process without formal objections. Only late in the process did Greek, Irish, and Latvian authorities raise money laundering concerns. According to rumors, the ECB exerted considerable pressure to ensure the license was not granted despite a clean process. Facing an imminent rejection, Binance withdrew its application. Economically, the group nonetheless remains dominant. Binance is now pursuing a new license in France.
Binance withdraws its Greek MiCA license application and halts all EU crypto services from 1 July. Customers must withdraw their funds.
The digital euro moves closer
While Brussels keeps private exchanges on a tight leash, it is advancing its own digital money. The European Parliament’s ECON committee has approved the legal framework for a digital euro and ordered trilogue negotiations. A plenary vote is expected in early July, with full implementation targeted for 2029. The push is justified on geopolitical grounds. German MEP Markus Ferber pointed to the dependence on Visa and Mastercard, which process 61% of card payments in the eurozone. The ECB currency is intended to work both online and offline, offer cash-like privacy, and remain free of charge for users. It will be expensive nonetheless. Development will cost up to EUR 1.3 billion through launch, with annual operating costs of around EUR 320 million. The central concern remains banking stability. A holding limit of EUR 3,000 per person could drain up to EUR 699 billion in deposits and destabilize smaller institutions. In addition, 58% of Europeans view the project with reservation, according to the ECB. A digital euro could, after all, be programmed so that spending might be restricted or tied to conditions. Negative interest rates on balances, capital controls, or automatic tax deductions would also be technically feasible. Comprehensive transaction monitoring could moreover significantly curtail financial privacy.
The EU Parliament’s ECON committee has approved the legal framework for the digital euro and ordered trilogue negotiations to begin.
US authorities oppose the Clarity Act
In the US, a key crypto initiative has once again stalled. The Digital Asset Market Clarity Act, the most comprehensive US market structure law to date, splits oversight between the SEC and the CFTC. The House of Representatives passed it in July 2025, and the Senate Banking Committee approved it in May. Now the headwinds are growing. At the center is Section 604, which exempts non-custodial software developers from regulation. Four major law enforcement associations warn that the clause would hinder investigations into mixers and certain DeFi services. More than 100 Catholic dignitaries and the AFL-CIO labor federation also raised concerns. The political math is delicate. The Republicans hold only 53 Senate seats, while passage requires 60 votes. On the prediction market Polymarket, the probability of a 2026 resolution fell from 74% to 43%. More than 60 crypto CEOs are defending the clause. Senator Cynthia Lummis warns, however, that if it fails, the issue might not return until 2030.
Four US law enforcement organizations warn that Section 604 of the Clarity Act would hinder investigations into crypto crime.
Zuckerberg launches his own prediction market with Arena
Meta now wants to capitalize on the very boom in these prediction markets. Under the direct supervision of Mark Zuckerberg, the company is developing an app called “Arena” that runs independently of Facebook, Instagram, and WhatsApp. The launch will initially proceed without real money, using a video game-style points system. A later transition to real betting remains open. The market is attractive. Trading volume grew from around $50 billion in 2025 to $130 billion, and the investment bank Bernstein expects $1 trillion annually by the end of the decade. The valuations of the pioneers are correspondingly high, at around $22 billion for Kalshi and the $15 billion that Polymarket is targeting. Unlike Polymarket, which runs on-chain, Arena is a centrally controlled app without a blockchain. The move follows Meta’s pattern of copying competitors, from Stories to Reels. The sector is overshadowed by scandals, including a DOJ insider trading case and reports of staged winning videos paid for by Polymarket.
Meta is building the prediction market app Arena under Zuckerberg as an attack on Polymarket and Kalshi, initially without real money.
Institutional investors retreat from Bitcoin
In addition: Bitcoin fell this week to $59,023, its lowest level since October 2024. Around $800 million in long liquidations accelerated the daily decline of 5.4%. Since the start of the year, it stands at a loss of 30.6%, and the Fear & Greed Index reads 24 (“Extreme Fear”). The selling pressure hits all pillars of institutional demand at once. The spot ETFs recorded outflows for six consecutive weeks, totaling $5.94 billion, with BlackRock’s IBIT alone losing $980 million in a single week. MicroStrategy is also coming under pressure. The stock fell below $90, and an estimated $11 billion in unrealized losses weighs on its Bitcoin holdings. For the first time since 2022, the company sold Bitcoin to service its increased dividend obligations of around $1.2 billion. Shifted interest rate expectations and competition from AI and semiconductor stocks are adding further weight.
The Bitcoin price falls below USD 60,000 to its lowest level since October 2024 as Strategy, ETF buyers and retail all retreat at once.
