- Binance’s reported failure to secure a MiCA licence in Greece could prevent it from legally serving EU customers from July.
- The case highlights the significance of the EU’s new crypto regulatory regime, which requires firms to obtain approval by 30 June.
- Binance maintains its application meets regulatory requirements and says it will provide further guidance before the deadline.
Europe’s new cryptocurrency regulatory framework is set to deliver a major test for Binance, with reports suggesting the exchange’s application for a MiCA licence may be rejected by Greece’s market regulator. The decision could jeopardise Binance’s ability to continue serving customers across the European Union.
MiCA requires crypto firms to obtain authorisation from a national regulator by 30 June in order to operate throughout the EU. Once approved in a member state, a company can use that licence to provide services across all 27 countries in the bloc.
Sources told Reuters that Binance’s application to the Hellenic Capital Market Commission is expected to be refused. Without approval, the exchange would not qualify to continue operating in the European Union from the beginning of July.
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Exchange Pledges Clarity
Binance said it entered the process in good faith and has been engaged with regulators for approximately 18 months. The company stated it believes it meets the standards required for MiCA authorisation and understood its application had been assessed as compliant.
A spokesperson said the HCMC had not provided any official indication that the application would be rejected.
In response to the reports, Binance said it plans to “support an orderly process and minimise disruption to our users”. The exchange also confirmed it will issue another update before 30 June.
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