Crypto Exchange Binance Will Be Rejected for EU Regulatory License: Reuters

In brief A report from Reuters cites sources saying that the firm's MiCA application will be denied in the European Union. Binance said Tuesday that it believes it is operating in compliance with applicable laws in the EU. If the firm does not gain approval, it would need to cease operations in the EU. Leading crypto exchange Binance said Tuesday that it believes it is operating in compliance with the European Union’s Markets in Crypto Assets (MiCA) regulatory framework, following a report from Reuters that the firm is likely to lose its ability to offer services to EU residents.Citing two sources familiar with the matter, Reuters 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,” they added. The firm established a holding company in Greece in December and formally applied for a MiCA license in January through the HCMC. If approved, Binance—the world’s top crypto exchange by daily trading volume—would then be able to pass through its services to other EU nations, like France, Spain, and Germany.Otherwise, it would need to cease operations across the European Union—a reality that Reuters says 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, the firm indicated that Europe remains “central to [its] long-term plans,” and it “remains willing and ready to operate under a truly harmonized MiCA regime.”In January, regulators in France indicated that around 90 crypto firms were operating in the region without MiCA compliance, though about 30% had applied for the license at that time. Last year, the nation’s regulators threatened to disallow the “passporting,” or transference of compliance allowed by MiCA licenses throughout EU nations, as it sought to push the oversight upwards to the European Securities and Markets Authority (ESMA). A spokesperson for Binance told Decrypt that its understanding is that its MiCA application was reviewed at the ESMA level as well.Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.