Binance EU License Application in Greece Expected to Be Rejected

Binance may lose authorization to serve European Union customers as early as the end of the month after its application for a regulatory license in Greece is expected to be rejected, Reuters reported Tuesday citing two sources familiar with the matter. The world's largest crypto exchange by volume has been seeking authorization under the EU's Markets in Crypto-Assets (MiCA) framework, which requires crypto firms to obtain a license to continue offering services across the bloc. The MiCA transition phase expires on July 1, after which unlicensed firms serving EU customers would breach EU law according to the European Securities and Markets Authority.

Binance Disputes Reuters Report on License Rejection

A Binance spokesperson countered the Reuters report, stating the exchange believes it has met MiCA requirements and worked alongside regulators over an 18-month application process. The spokesperson added that Binance received no indication that the application with Greece's Hellenic Capital Market Commission would be rejected.

ESMA Sets July 1 Deadline for MiCA Compliance

In April, the European Securities and Markets Authority warned that crypto firms serving EU customers without the proper license after July would be in breach of EU law. The authority stated that such firms should make plans to wind down operations or migrate their customers. A grace window was put in place for firms to apply and receive licensure, but that transition phase expires on July 1.

Binance Settled $4.3 Billion with U.S. in 2023

Binance has spent the past several years trying to rebuild relationships with global regulators after a series of anti-money laundering compliance failures. These failures resulted in a $4.3 billion settlement with the U.S. in 2023 and a four-month prison sentence for former CEO Changpeng Zhao. Zhao was later pardoned by President Donald Trump.

Current CEO Prioritizes License Acquisition Strategy

The exchange's current CEO, Richard Teng, has made obtaining licenses in major jurisdictions a central part of its expansion strategy.

FAQ

What is the deadline for Binance to obtain an EU license under MiCA? The MiCA transition phase expires on July 1. After this date, crypto firms serving EU customers without proper licensure would be in breach of EU law according to the European Securities and Markets Authority.

Why did Binance settle $4.3 billion with the U.S. in 2023? Binance settled $4.3 billion with the U.S. in 2023 due to a series of anti-money laundering compliance failures. The settlement was part of the exchange's efforts to rebuild relationships with global regulators.