Binance has said it will pursue authorization in another European Union jurisdiction if its licensing application in Greece does not advance before the bloc’s MiCA compliance deadline.
Summary
- Binance said it will seek authorization in another EU country if its Greek MiCA application fails to secure approval before the July 1 deadline.
- EU regulators have reportedly raised concerns about Binance’s compliance history, corporate structure, and executive oversight as the exchange searches for a licensing pathway.
- ESMA said crypto firms without MiCA authorization must begin winding down EU operations immediately after the transition period ends.
Reuters reported that Gillian Lynch, Binance’s head of Europe and the United Kingdom, said the exchange remains committed to operating in Europe despite setbacks in its effort to secure authorization under the Markets in Crypto-Assets Regulation. Lynch told the news agency that Binance submitted a formal application only in Greece and is evaluating alternative options if approval does not materialize.
The exchange faces a quickly narrowing timeline as MiCA’s transition period expires on July 1. The European Securities and Markets Authority stated on Tuesday that crypto asset service providers without authorization must take “immediate” steps to wind down their activities across the European Union.
Reuters cited two people familiar with the matter who said Binance held discussions with regulators in Greece, Ireland, and Latvia. Those sources said regulators expressed concerns about the company’s previous anti-money laundering penalties, its international corporate structure, the background of senior executives, and what officials viewed as a risk-taking culture.
Lynch told Reuters that Binance had invested heavily in compliance and internal controls, employed roughly 1,500 compliance staff, and had no unresolved issues related to its application. She also said the company did not know why authorization had not been granted and had expected a positive outcome from the Greek process.
Binance seeks alternative MiCA pathway
Binance publicly challenged reports of regulatory resistance earlier this month. On June 16, the company disputed a Reuters report that EU regulators were preparing to reject its MiCA application. Binance said Greece’s Hellenic Capital Market Commission had completed its review and considered the filing compliant with MiCA requirements, subject to further examination at the ESMA level.
A June 18 report from The Big Whale stated that Binance’s anticipated authorization route through Greece had stalled before the June 30 deadline. The publication cited sources who claimed political concerns linked to stablecoins and Binance’s influence in the European crypto sector contributed to opposition against the application. The report identified France as the exchange’s remaining realistic option for securing authorization within the required timeframe.
Binance responded at the time by stating that it had worked with regulators for 18 months, participated 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 for legal certainty and consumer protection.
Reuters reported that regulators reviewing Binance’s application were also concerned about the continuing influence of founder Changpeng Zhao. One source cited Zhao’s February podcast comments that he remained the exchange’s ultimate beneficial owner. Lynch rejected that characterization and told Reuters that Zhao is “100% removed” from the company.
Binance’s regulatory history remains part of the scrutiny surrounding its European authorization efforts. In 2023, Zhao pleaded guilty to violating U.S. anti-money laundering laws as part of a $4.3 billion settlement between Binance and U.S. authorities. Prosecutors said the exchange failed to report more than 100,000 suspicious transactions connected 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 take larger role in MiCA disclosures
The licensing debate extends beyond exchange operations and into token compliance requirements under MiCA. Ryan King, creator of the EU Crypto Register, said in a LinkedIn post that at least 380 of the 867 white-paper notifications he tracked were submitted 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 illustrate how authorized exchanges have become increasingly important participants in preparing and notifying MiCA white papers for assets listed on their platforms.
