Binance Confident in EU Compliance Amidst Report of Potential Service Loss
Leading cryptocurrency exchange Binance stated Tuesday that it believes it is operating in compliance with the European Union’s Markets in Crypto Assets (MiCA) regulatory framework. This assertion comes in the wake of a Reuters report suggesting the firm is likely to lose its ability to offer services to EU residents.
Reuters, citing two sources familiar with the matter, reported that Greece’s markets regulator is expected to deny Binance’s application ahead of the June 30 license deadline.
“We have been pursuing a MiCA licence and have worked constructively with regulators over the past 18 months, including through a comprehensive application process with the HCMC in Greece,” a spokesperson for the exchange told Decrypt. “Our understanding is that the HCMC completed its review of the application and considered it compliant with MiCA requirements.”
The firm established a holding company in Greece in December and formally applied for a MiCA license in January through the Hellenic Capital Market Commission (HCMC). Approval would have allowed Binance, the world’s largest crypto exchange by daily trading volume, to extend its services to other EU nations, including France, Spain, and Germany.
However, if the application is denied, Binance would be required to cease operations across the European Union, a scenario Reuters indicated is likely imminent.
“Our priority is to minimize disruption and keep users informed. We will provide further details directly as additional information becomes available, including in relation to next steps and available options,” the firm posted on X.
In a blog post, Binance emphasized that Europe remains “central to [its] long-term plans” and that it “remains willing and ready to operate under a truly harmonized MiCA regime.”
Earlier this year, French regulators indicated that approximately 90 crypto firms were operating in the region without MiCA compliance, although about 30% had applied for the license at that time. Last year, French regulators had threatened to disallow the “passporting” – the transference of compliance allowed by MiCA licenses throughout EU nations – as they sought to elevate oversight to the European Securities and Markets Authority (ESMA).
A spokesperson for Binance told Decrypt that the exchange’s understanding is that its MiCA application was also reviewed at the ESMA level.
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