Binance is weighing new routes to secure authorization in the European Union after its MiCA application in Greece was rejected. Gillian Lynch, who oversees the company’s operations across Europe and the UK, said Binance is now reviewing alternative regulatory options to preserve its presence in the region.
Before filing, Binance had engaged with regulators in several countries, including Greece, Ireland, and Latvia. Greece was the only jurisdiction where the exchange submitted a full application under the EU’s Markets in Crypto-Assets framework. Binance had expected approval from the Hellenic Capital Market Commission, but the process ended in a rejection before the close of MiCA’s transition period. The company said Greek authorities did not provide detailed reasons for the denial.
MiCA timetable narrows Binance’s room to wait
MiCA creates a single regulatory framework for crypto assets across the European Union. A license granted in one member state can be passported across the bloc. Firms that fail to obtain authorization, by contrast, must stop regulated activity once the transition windows expire.
The European Securities and Markets Authority has already called on unauthorized platforms to reduce operations promptly and in an orderly way. That raises the pressure on Binance to obtain approval from another EU member state soon, or begin a phased pullback of regulated services in the region.
Compliance history remains central to the review
Reports say regulators in Greece, Latvia, and Ireland coordinated parts of their assessment of Binance’s application. Their discussions focused on consistent supervisory standards and on limiting the risk that firms could migrate to jurisdictions seen as less strict. European authorities are trying to avoid gaps created by uneven oversight.
Binance’s global corporate structure and earlier anti-money laundering breaches have also remained under scrutiny. Regulators have examined the suitability of senior management and the strength of the exchange’s internal compliance systems. Binance has said it has upgraded its controls and now employs about 1,500 compliance staff worldwide.
Past legal issues in the US also continue to shape the conversation. In 2023, founder Changpeng Zhao admitted violating US anti-money laundering laws and agreed to a $4.3 billion settlement. Lynch said Zhao no longer takes part in daily operations, though he remains the company’s ultimate beneficial owner.
Volume impact may be limited, user access is a bigger question
On trading activity alone, the effect may be contained. CryptoQuant analyst Maartunn said euro-denominated pairs make up roughly 1% of Binance’s global spot trading volume. That suggests a loss of EU licensing would not necessarily produce a major hit to the exchange’s overall spot figures.
User access across major European markets is a separate issue. The report said the outcome could affect customers in countries such as France, Germany, and Spain. Binance’s mobile app was downloaded more than 4 million times across the EU last year, pointing to a sizable regional user base. If the company does not secure a fresh license through another member state, it may have to gradually limit its regulated services across the bloc.