Binance said it will seek a license in another EU jurisdiction if its license application in Greece is not submitted before the bloc’s MiCA compliance deadline.
summary
- Binance said it will seek a license in another EU country if Greece’s MiCA application fails to gain approval before the July 1 deadline.
- EU regulators have reportedly raised concerns about Binance’s compliance history, company structure and executive oversight as the exchange searches for a licensing path.
- The Securities and Markets Authority said that cryptocurrency companies that do not obtain a MiCA license must begin winding down EU operations immediately after the transition period ends.
Reuters I mentioned Gillian Lynch, Binance’s head of Europe and the UK, said the exchange remains committed to operating in Europe despite setbacks in its efforts to obtain a license under the Markets in Crypto Assets Rules. Lynch told the news agency that Binance has only submitted a formal application in Greece and is evaluating alternative options if it is not approved.
The exchange faces a rapidly tightening timeline as the MiCA transition period ends on July 1. The European Securities and Markets Authority said on Tuesday that unauthorized crypto asset service providers must take “immediate” steps to end their activities across the European Union.
Binance has held discussions with regulators in Greece, Ireland and Latvia, Reuters reported, citing two people familiar with the matter. Those sources said that regulators expressed concerns about the company’s previous anti-money laundering sanctions, its international corporate structure, the background of its senior executives, and what officials considered a culture of risk.
Lynch told Reuters that Binance invested heavily in compliance and internal controls, employed nearly 1,500 compliance staff, and did not have any unresolved issues related to its application. It also said the company did not know why the license had not been granted and was expecting a positive outcome from the Greek operation.
Binance is looking for an alternative path to MiCA
Binance publicly challenged reports of regulatory resistance earlier this month. On June 16 the company Disputed Reuters reports that EU regulators are preparing to reject the MiCA application. Binance said Greece’s Hellenic Capital Market Commission has completed its review and deemed the registration compliant with MiCA requirements, and is subject to further examination at ESMA level.
June 18 a report From The Big Whale reported that Binance’s expected delegation path through Greece has been halted ahead of the June 30 deadline. The post cited sources who claimed that political concerns associated with stablecoins and Binance’s influence in the European cryptocurrency sector contributed to opposition to the app. The report identified France as the remaining realistic option for the exchange to obtain the license within the required time frame.
Binance responded at the time by saying it had worked with regulators for 18 months, engaged in the process in good faith, and remained committed to minimizing disruption for European users. The company also reiterated its support for MiCA, describing the framework as a positive step towards legal certainty and consumer protection.
Regulators reviewing the Binance app were also concerned about the continuing influence of founder Changpeng Zhao, Reuters reported. One source cited Zhao’s comments on a podcast in February in which he said he remained the ultimate beneficial owner of the exchange. Lynch rejected that characterization, telling Reuters that Chow had been “100% removed” from the company.
Binance’s regulatory history remains part of the scrutiny surrounding its European licensing efforts. In 2023, Zhao pleaded guilty to violating US anti-money laundering laws as part of a $4.3 billion settlement between Binance and US authorities. Prosecutors said the exchange failed to report more than 100,000 suspicious transactions linked to groups designated by Washington as terrorist organizations.
According to Reuters, Binance recorded more than 4 million app downloads across the European Union last year, citing estimates from Sensor Tower. France, Germany, and Spain accounted for the largest share of those downloads.
Exchanges play a larger role in MiCA disclosures
The debate over licensing extends beyond exchanges and into token compliance requirements under MiCA. Ryan King, founder of the European Union Cryptocurrency Registry, said on LinkedIn mail At least 380 of the 867 white paper notices it tracked were filed by third parties rather than token issuers.
King said Kraken, LCX, OKX and Bitstamp were responsible for 271 notifications, representing about 31% of all entries recorded in his database. The figures show how chartered exchanges have become increasingly important participants in the preparation and notification of MiCA white papers for assets listed on their platforms.
