Binance could be forced out of EU as Greece prepares MiCA licence ruling: report

The article was updated with comments from Binance.

Binance has faced a potential setback in Europe after its application for a Markets in Crypto-Assets (MiCA) licence in Greece has reportedly moved toward rejection, putting its ability to continue serving clients across the European Union at risk from July.

According to a June 16 Reuters report citing two people familiar with the matter, Binance’s MiCA application submitted to Greece’s Hellenic Capital Market Commission is expected to be turned down. Under the EU’s new MiCA framework, crypto firms must secure authorization by the end of June to continue operating across the bloc.

If the application is rejected, Reuters reported that Binance would not qualify to offer services to EU customers once the new regulatory deadline takes effect at the start of July.

A spokesperson for Binance told Reuters that the exchange has pursued MiCA authorization and worked with regulators for the past 18 months through what the company described as a comprehensive application process with Greece’s market regulator.

The spokesperson said Binance believes it has satisfied the requirements needed for authorization and understands that the Hellenic Capital Market Commission has completed its review and considers the application compliant with MiCA standards.

“HCMC has given no formal indication of the contrary,” the spokesperson told Reuters.

The Hellenic Capital Market Commission declined to comment on the application when contacted by Reuters, citing confidentiality requirements.

In a series of posts on X published after the Reuters report, Binance said it remains committed to its European users and will continue operating in compliance with applicable laws. The exchange said it has taken what it described as a “prudent approach” as the MiCA transition period comes to an end, adding that its priority is to minimize disruption and give customers enough time and clarity about any next steps.

Binance also said it had worked with regulators for the past 18 months and participated in the MiCA authorization process “in good faith.”

According to the company’s statement, its understanding is that the Greek regulator completed its review of the application and considered it compliant with MiCA requirements, while the filing was also reviewed at the European Securities and Markets Authority level.

Addressing the potential consequences of delays in the approval process, Binance argued that the issue extends beyond its own business. The company said any disruption to MiCA authorizations could reduce liquidity, limit competition and user choice, and encourage activity outside the European Union.

Binance added that it remains committed to Europe and is continuing to pursue what it called the “right path forward” under MiCA, promising further updates before June 30.

Europe licence decision comes amid ongoing regulatory scrutiny

Only a few months earlier, Binance had publicly highlighted Greece as its preferred regulatory base in Europe. 

During an event in February, Binance co-CEO Richard Teng said the country’s workforce and security profile gave it advantages over larger financial centers as the company evaluated where to establish its European regulatory headquarters.

At the time, Teng, who previously served as a regulator in Singapore and Abu Dhabi, said the final decision on Binance’s licensing status would rest with European authorities before the July deadline.

The reported setback in Europe follows other licensing challenges Binance has encountered in key jurisdictions. 

In January, the Bangko Sentral ng Pilipinas said neither Binance nor its local partner BlockShoals Technologies held the virtual asset service provider licence required to conduct certain crypto activities in the Philippines.

According to reporting by BitPinas, Philippine regulators clarified that participation in the Securities and Exchange Commission’s StratBox regulatory sandbox did not remove the need for separate authorization from the central bank. Binance had sought to re-enter the Philippine market through BlockShoals under that framework.

While the Philippine case involved a single national market, the reported MiCA decision carries implications across all EU member states because the licence would have allowed Binance to operate throughout the bloc under a unified regulatory regime.

For now, Binance maintains that it has met the necessary requirements, while Reuters reported that people familiar with the matter expect the application to be rejected before the June licensing deadline.