Binance Faces Potential EU Exit as Greek License Bid Nears Rejection

BY COMFORT OGBONNA

Binance, the world’s largest cryptocurrency exchange, could soon lose its ability to serve customers across the European Union after its application for a key regulatory license in Greece reportedly moved closer to rejection, according to sources familiar with the matter.

The development comes as crypto companies race to comply with the European Union’s new Markets in Crypto-Assets (MiCA) framework, a landmark regulatory regime designed to bring greater oversight, transparency, and consumer protection to the rapidly growing digital asset industry. Under the new rules, cryptocurrency firms must secure authorization from a national regulator within the bloc by the end of June if they wish to continue operating throughout the EU.

Binance submitted its application through Greece’s Hellenic Capital Market Commission (HCMC), hoping to secure a MiCA license that would allow the exchange to continue offering services to customers across all 27 EU member states. However, people familiar with the process said the application is expected to be rejected, placing the company’s European operations in jeopardy.

The HCMC declined to comment on the status of Binance’s application, citing confidentiality requirements surrounding regulatory reviews. If the exchange fails to obtain approval before the MiCA deadline, it could lose the legal basis needed to continue serving clients across the European Union beginning in July.

A Binance spokesperson said the company has spent the past 18 months working closely with regulators and pursuing compliance with the bloc’s new crypto rules. The spokesperson noted that Binance had completed a comprehensive application process with Greek authorities and remains confident that it has satisfied the requirements necessary to obtain authorization under MiCA.

According to the company, regulators completed their review of the application and Binance believes it meets the standards outlined under the new regulatory framework. The spokesperson added that the exchange has not received any formal indication from the Greek regulator suggesting otherwise.

The licensing decision is being closely watched across the cryptocurrency industry because MiCA represents one of the most significant regulatory overhauls the sector has faced. The framework aims to create a unified set of rules for digital asset companies operating within the EU, replacing the patchwork of regulations that previously existed across individual member states.

For Binance, securing a MiCA license is particularly important as Europe remains one of its largest and most strategically significant markets. The exchange has faced increased regulatory scrutiny in several jurisdictions over the past few years and has sought to strengthen its compliance efforts while building relationships with regulators around the world.

Earlier this year, Binance co-Chief Executive Officer Richard Teng highlighted Greece as a strong candidate for the company’s European regulatory base. Teng praised the country’s skilled workforce, favorable operating environment, and security infrastructure, arguing that it offered advantages over some of Europe’s larger financial centers.

Teng, who previously served in senior regulatory positions in Singapore and Abu Dhabi, acknowledged at the time that the final decision would rest with European authorities and that Binance would have to wait for the outcome of its application before the June deadline.

If the reported rejection is confirmed, Binance may be forced to reassess its strategy in Europe at a time when regulators are tightening oversight of the crypto sector. The outcome could also serve as an important test of how strictly authorities intend to enforce the new MiCA framework as the industry enters a new era of regulation across the European Union.