According to Reuters, Binance’s MiCA license application filed through Greece is reportedly set to be rejected. If the report is accurate, the world’s largest cryptocurrency exchange could fail one of its most critical regulatory tests in Europe just before the EU’s July 1 deadline.
MiCA, or Markets in Crypto-Assets, is the European Union’s comprehensive regulatory framework for crypto assets. A license obtained from any EU member state can theoretically be used across the entire bloc, making the choice of application country a strategic decision for companies.
Binance chose Greece and submitted its application to the Hellenic Capital Market Commission (HCMC). The transitional period ends on July 1; after that date, companies operating without the required license will be in breach of EU law.
Greece May Reject the Application
According to Reuters, citing two sources familiar with the matter, the HCMC plans to reject Binance’s application. Such a decision would affect more than the Greek market, as it could directly disrupt the exchange’s operations across the EU.
MiCA licenses operate under a passporting system. Once authorized in one member state, a company can provide services throughout the bloc. A rejection in Greece would therefore block Binance’s chosen route to securing access to the wider European market.
Binance disputes this account. A company spokesperson said the exchange believes it meets MiCA’s requirements and has worked with regulators throughout the 18-month application process. The spokesperson added that Binance had received no indication that its application would be rejected.
There are now two conflicting accounts: a report based on unnamed sources and an official company statement rejecting its claims. The truth will become clear once the regulator announces its final decision.
In a warning published in April, the European Securities and Markets Authority (ESMA) said crypto companies serving EU customers without the necessary authorization after July 1 would be violating the law. ESMA advised such companies to prepare either to cease their operations or transfer their customers to licensed platforms.
For Binance, a rejection would create more than reputational damage. It would also bring an immediate operational challenge: the exchange would need to secure an alternative license quickly or redirect its European customers elsewhere.
The report carries additional weight when viewed alongside Binance’s regulatory history. The exchange has been working to repair its relationship with regulators worldwide following its $4.3 billion settlement with US authorities in 2023 over anti-money laundering violations. Former CEO Changpeng Zhao was also sentenced to four months in prison before later receiving a pardon from President Donald Trump.
Current CEO Richard Teng has repeatedly placed licensing in major markets at the center of Binance’s growth strategy. In a tweet posted this morning, Teng reiterated the company’s commitment to Europe and said Binance remained determined to obtain a MiCA license. He described the EU’s regulatory framework as “clear, fair and harmonized.”
Binance appeared to believe that the application process was progressing smoothly, at least based on its public statements. Reuters’ sources paint a different picture. The outcome should become clear within weeks, with the July 1 deadline rapidly approaching.
If the application is rejected, Binance users in the EU could be directly affected. The company may be forced to shut down parts of its European operations or move customers to a licensed alternative. ESMA’s April warning had already outlined such a scenario, although carrying out a transition involving millions of users would be a far more significant challenge.
The market is now waiting for both the HCMC’s official decision and Binance’s response.
