The world’s leading crypto exchange Binance said on Tuesday it believes it is operating in compliance with the European Union’s regulatory framework known as Markets in Crypto Assets (MiCA), after Reuters reported the company could soon lose its right to serve customers in the EU.
Citing two sources familiar with the matter, Reuters said Greece’s capital markets regulator is expected to reject Binance’s application for a MiCA license before a June 30 deadline.
“We have been working to obtain the MiCA license and have engaged constructively with regulators over the past 18 months, including a comprehensive application process through the Greek Capital Markets Commission (HCMC),” a Binance spokesperson told Decrypt.
He added that according to their knowledge, HCMC has completed its review of the application and assessed that it meets the MiCA requirements.
Binance established a holding company in Greece in December last year, and officially applied for a MiCA license through HCMC in January. If the license is approved, Binance could offer its services in other countries of the European Union, including France, Spain and Germany.
Otherwise, the company could be forced to suspend operations across the European Union, which Reuters cited as a very likely scenario.
“Our priority is to minimize potential disruptions and keep users informed of any changes in a timely manner. We will post additional information on next steps and available options as they become available,” Binance said on social network X.
In a blog post, the company noted that Europe remains a “key part of long-term plans” and that Binance remains ready to operate within the single MiCA regulatory system.
At the beginning of the year, French regulators announced that around 90 crypto companies were operating without compliance with MiCA rules, while approximately 30 percent of them had applied for a license.
Last year, the French authorities even considered limiting the so-called “passporting” of licenses, i.e. the possibility for a company with one MiCA license to operate in all EU member states. The aim was to transfer much of the supervision to the European Securities and Markets Authority (ESMA).
A spokesperson for Binance stated that, according to the information available to the company, their application for a MiCA license was also subject to consideration at the ESMA level.
A potential license denial would represent one of the biggest regulatory challenges for Binance in Europe and could significantly affect the operations of the world’s largest crypto exchange in the European Union market.
