Crypto giant Binance could be forced to quit EU
Crypto exchange poised to have MiCA licence application rejected, Reuters reports
Global cryptocurrency exchange Binance could be forced to exit the EU and stop offering its services within the bloc.
Reuters reported on Tuesday that Binance’s application for an EU operating licence, called MiCA, is set to be rejected by Greek regulators.
Under EU rules, companies offering crypto-related services have until the end of June to operate within the EU without a MiCA licence. After that, they must be licensed by an EU member state to be able to operate within the 27-member bloc.
Citing sources, Reuters said Binance’s application for a MiCA licence – which it submitted 18 months ago – is set to be rejected.
Binance submitted its application to Greece's Hellenic Capital Market Commission, which subsequently elevated it to the EU-wide regulator, the European Securities and Markets Authority (ESMA) for further review.
While Binance could opt to file a MiCA application in a different EU member state, that application has no chance of being approved by the June 30 EU-wide deadline.
Binance is the world’s largest cryptocurrency exchange and has millions of users across the EU. In a statement released after the Reuters article, Binance said it remained committed to obtaining a MiCA licence and wanted to “minimize disruption and keep users informed.”
It pledged to provide a further update before June 30. Company co-CEO Richard Teng said user funds “remain secure, are and will remain accessible at all times.”
Teng had said back in February that Binance had opted to apply for a licence in Greece after taking into consideration “talent pool, safety and security issues.”
Greece, unlike Malta, France, Germany or various other EU jurisdictions, has yet to issue a single MiCA licence.
Binance had initially looked towards Malta as a potential base for its EU operations, saying back in 2018 that it wanted to establish a “banking partnership” on the island. That partnership soured and the company relocated after Malta introduced crypto legislation. In subsequent years, Malta’s financial services regulator, the MFSA, issued two separate warnings about Binance.
Binance founder Changpeng Zhao also fell foul of authorities in the USA, where he pled guilty to violating anti-money laundering laws. Zhao was subsequently given a full pardon by US President Donald Trump.