Binance May Lose Its Right to Operate in the EU: What Is Known About the Licensing Issue
17 June 07:54
Binance, the world’s largest cryptocurrency exchange, may soon lose the right to serve customers in the European Union. The reason is the risk of being denied a license under the EU’s new MiCA regulations governing crypto assets. Reuters reported this, citing two sources familiar with the situation, according to "Komersant Ukrainian"
What Happened to Binance in the EU
According to Reuters, Binance’s application for a MiCA license, submitted to the Hellenic Capital Market Commission, may be rejected. If this happens, the exchange will not be able to legally serve customers in European Union countries starting in early July.
This is a critical deadline for the crypto market: companies providing crypto-asset services in the EU must obtain the appropriate authorization by the end of June 2026.
Without such a license, Binance will not be able to use the so-called “passport” mechanism, which allows a company authorized in one EU country to operate throughout the entire bloc.
What is MiCA
MiCA is the European Union’s regulation on crypto-asset markets. It establishes uniform rules for companies that issue, hold, or facilitate transactions involving cryptocurrencies and other digital assets.
Simply put, MiCA requires crypto companies to operate under clear rules: obtain licenses, disclose information, comply with customer protection requirements, and be subject to oversight by European regulators.
For large exchanges, such a license is effectively the key to operating in the EU market.
Why Binance Applied in Greece
Binance applied for a MiCA license through Greece. Earlier, the company’s co-CEO Richard Teng stated that Greece offers advantages as a potential regulatory hub for Binance in Europe.
Among these advantages, he cited a skilled workforce and a high level of security.
However, according to Reuters, the Hellenic Capital Market Commission may reject the exchange’s application. The regulator itself declined to comment, citing confidentiality rules.
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What Binance Says
Following the Reuters report, Binance stated on social media platform X that it aims to support an “orderly process” and minimize potential disruptions for users.
A Binance representative also told Reuters that the company had been working with regulators for 18 months to obtain a MiCA license.
Binance emphasizes that, in its view, the exchange has met the necessary requirements. The company also stated that it had not received any official indication to the contrary from the HCMC.
“The HCMC has not issued any official statements to the contrary,” a Binance spokesperson told Reuters.
What Will Happen to Binance’s EU Customers
If Binance does not obtain a license by the deadline, the fate of its EU customers will remain uncertain. Reuters reports that without authorization, the exchange will not be able to continue operating in the European Union starting in early July.
The company has promised to provide additional information by June 30, 2026.
Binance also warned that delays in obtaining MiCA authorization could lead to the relocation of some of its operations outside the EU.
Why the EU Is Tightening Control Over the Crypto Market
European regulators are tightening control over the crypto sector due to risks to investors, financial stability, and the fight against money laundering.
MiCA is intended to make the digital asset market more transparent and regulated. For companies, this means more requirements, and for users, a potentially higher level of protection.
At the same time, the new rules create significant regulatory pressure for large global crypto exchanges. Without a license, companies could lose access to one of the world’s largest financial markets.
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