Binance Advocates for MiCA Evaluation Based on Licenses Granted

Policy Binance has expressed that the evaluation of the EU's Markets in Crypto-Assets (MiCA) regulation should focus on the firms it licenses rather than those it excludes.

Gillian Lynch, Binance's Europe head, stated that the company fulfilled Greece's licensing criteria and remains dedicated to the EU, despite withdrawing its MiCA application just before the July 1 deadline.

By Olivier Acuna| Edited by Nikhilesh De, Aoyon Ashraf Jul 3, 2026, 6:30 a.m. 4 min read

Binance recently withdrew its MiCA license application in Greece following regulatory delays, which forced the exchange to inform users about the suspension of certain services and the halt of new registrations for EU clients just days before the July 1 cutoff.

Gillian Lynch, who leads Binance's operations in Europe, emphasized that the success of MiCA should hinge on the number of crypto companies integrated into the regulated framework, defending Binance's measures against financial crimes and countering claims made in recent Wall Street Journal articles.

Lynch argued that excluding Binance from MiCA would adversely impact Europe's crypto landscape by eliminating crucial liquidity and infrastructure, asserting the exchange's commitment to obtaining a new license and remaining in Europe despite these challenges.

In an interview, Lynch highlighted that the effectiveness of MiCA should be assessed not merely by its existence but by how many firms are brought into compliance. "Is the success of MiCA that we have regulation, or is the success that the players are regulated?" she questioned.

Despite the withdrawal from Greece, Lynch supports a system where national regulators issue licenses while the European Securities and Markets Authority (ESMA) oversees larger firms. She noted that other exchanges are also ceasing operations ahead of the July 1 deadline.

According to reports, ESMA had privately advised national regulators to reject Binance's MiCA applications due to concerns regarding compliance with financial-crime regulations.

In response to the Wall Street Journal's reporting, Lynch stated that it misrepresents how accounts were flagged and addressed, asserting that any suspicious activity was promptly reported to law enforcement. She labeled the article's portrayal as lacking the full context.

She also dismissed allegations that Binance disregarded sanctions concerns or retaliated against compliance personnel, calling such claims "categorically false." The exchange previously took legal action against the Wall Street Journal regarding reporting on accounts linked to Iran.

Out of approximately 3,000 registered virtual asset service providers (VASPs) in the EU, nearly 80% may not continue to operate post-MiCA, according to Erald Ghoos, CEO of OKX Europe.

This situation will compel over 10 million users to transition to a MiCA-compliant platform, as highlighted by Alex Fazel of Swissborg.

Challenges in Greece

Lynch expressed optimism that Binance's next licensing attempt would be swift, as much of the regulatory groundwork had already been laid with Greek authorities.

She noted that Binance anticipated receiving authorization in early June after being informed in April that their application was complete, but subsequent board meetings were delayed, leading to the withdrawal decision.

“We were deemed to have a complete application," Lynch explained. "Nothing was missing, nothing material was outstanding."

With nearly two decades of experience in traditional finance before entering the crypto space, Lynch understands regulatory expectations for licensed entities. She mentioned that Binance invests over $300 million annually in compliance, employing a global team of over 1,500 compliance professionals and collaborating extensively with Greece's Hellenic Capital Market Commission (HCMC) on its MiCA application.

While the HCMC has yet to respond to inquiries regarding Binance’s licensing process, Lynch stated, "As the person who led the license application, there’s nothing that I have been made aware of that there was any issue with the application. In fact, I was told the complete opposite."

Lynch further asserted that if Binance remains excluded from the MiCA framework, Europe’s crypto market would suffer beyond just the loss of its largest exchange, as Binance contributes essential liquidity and infrastructure to the broader ecosystem. She emphasized that regulation should enhance the industry rather than exclude entities that have made significant investments in compliance.

She refrained from speculating on whether political factors contributed to the delays, focusing instead on assisting users during this transition while formulating a new licensing strategy.

"We're very committed to being in Europe and very committed to being regulated," she affirmed.

Despite the challenges faced, Lynch views MiCA as a constructive development for the crypto sector, as it offers clearer guidelines for firms and enhanced consumer protection. "I fundamentally believe the crypto industry is maturing. Regulation brings maturity," she asserted. "The industry is here to stay, and it's part of the financial services ecosystem."

For the time being, Lynch indicated that Binance's priority is to support customers through the transition before pursuing a new licensing strategy. "We're not leaving Europe," she concluded. "This is an obstacle in our way at the moment. We fundamentally believe that we can be regulated and we will be back in the market."