Binance's Greek MiCA Application: Fully Compliant Yet Derailed by Political Factors
According to The Block, Binance founder Changpeng Zhao disclosed in a recent interview that the company's MiCA (EU Markets in Crypto-Assets Regulation) license application submitted in Greece was fully compliant with regulatory requirements and had been close to approval before being withdrawn. The process was ultimately interrupted by what Zhao described as 'external political factors,' forcing Binance to formally withdraw the application last week.
Zhao stated that during the application process, multiple EU countries expressed strong interest in hosting Binance's first MiCA authorization, leading to a certain degree of 'competitive solicitation' among regulators. However, non-regulatory factors intervened and caused the nearly-completed approval process to halt. Binance has indicated it will pursue MiCA authorization through other EU member states instead.
Zhao Responds to Rumors: No Confirmation of Ties to EU Politicians, Calls Outcome 'Lose-Lose'
Addressing market rumors linking Binance to high-ranking EU political figures, Zhao unequivocally stated that he has seen no verifiable documents and only encountered similar claims online, declining to confirm them. He emphasized that Binance remains committed to compliance and that no regulatory obstacles existed.
Zhao noted that the EU MiCA transition period formally ends on July 1, after which platforms without licenses must cease operations within the bloc. National regulators have made clear there will be no extension, placing immense pressure on the industry. He characterized the derailed Greek application as a 'lose-lose situation'—detrimental both to Binance's European compliance efforts and to the EU's unified regulatory image.
Drawing parallels to Japan and Singapore's regulatory experiences, Zhao argued that compliance processes often require longer cycles. Japan's Financial Services Agency (FSA) took several years to transition from restrictive policies to a comprehensive crypto exchange registration system, while Singapore's Monetary Authority of Singapore (MAS) evolved from an early wait-and-see approach to a clear licensing framework. Zhao hinted that the EU is currently in a similar painful adjustment period, needing time to digest political interference in regulatory matters.
Views on STRC Preferred Shares: Structure Too Complex
Towards the end of the interview, Zhao was asked about Strategy's (formerly MicroStrategy) STRC preferred share product. He bluntly described its structure as 'too complex' and admitted difficulty fully understanding its mechanics. However, he refrained from questioning the credibility of Strategy founder Michael Saylor, calling him a 'strong Bitcoin supporter.'
Industry analysts suggest that after Binance's withdrawal from the Greek MiCA application, regulators in other EU member states may become more cautious. With the July 1 transition deadline approaching, the window for crypto exchanges to achieve compliance in Europe is rapidly closing. Binance must quickly find an alternative, or risk losing access to the EU market.