Summary
- According to a report from Reuters, Binance's application under the MiCA framework is anticipated to be denied by EU regulators.
- The exchange stated on Tuesday that it believes it is adhering to the relevant EU laws.
- If Binance fails to secure the necessary approval, it may have to halt its operations within the EU.
On Tuesday, Binance, a leading cryptocurrency exchange, expressed confidence in its compliance with the European Union's Markets in Crypto Assets (MiCA) regulations. This statement came after Reuters reported that the firm is likely to lose its authorization to serve EU customers.
The report cited two sources familiar with the situation, suggesting that Greece's financial regulator is poised to reject Binance's application before the June 30 deadline.
A spokesperson for Binance stated, “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.”
They further noted, “Our understanding is that the HCMC completed its review of the application and considered it compliant with MiCA requirements.”
In December, Binance set up a holding company in Greece and submitted its MiCA application in January through the HCMC. If granted, this license would allow Binance, which is the largest crypto exchange by daily trading volume, to offer its services across other EU countries such as France, Spain, and Germany.
Failing to obtain the license would compel the company to cease its EU operations, a scenario that Reuters suggests could happen soon.
“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,” Binance communicated via X.
In a blog post, Binance asserted that Europe is integral to its long-term strategy and expressed its readiness to operate within a harmonized MiCA framework.
In January, French regulators reported that approximately 90 crypto firms were active in the region without MiCA compliance, although around 30% had applied for the license by that point.
Last year, French regulators warned of potentially blocking the “passporting” of MiCA licenses across EU nations as they sought to elevate oversight to the European Securities and Markets Authority (ESMA).
A Binance spokesperson informed Decrypt that they believe their MiCA application was also reviewed at the ESMA level.