Binance Co-CEO He Yi Addresses EU Regulatory Challenges
On June 27, Binance co-CEO He Yi publicly reaffirmed the exchange's stance on EU regulation, stating that Binance will not give up establishing effective communication with EU regulators and will continue to follow the gold standard of crypto compliance. She noted that every emerging industry faces varying degrees of regulatory and competitive challenges, citing Airbnb and Uber as examples that were banned in multiple countries yet became great internet companies of the mobile era.
He Yi emphasized that Binance views such challenges as opportunities to enhance team capabilities and standards. Over the past few years, Binance has set industry benchmarks for user asset transparency and built the highest compliance standards in the sector. She acknowledged that building effective communication and trust with EU regulators "may still take time," but the company will not abandon its efforts.
Compliance Does Not Equal Licensing; Binance Maintains High Self-Regulation
He Yi pointed out that the recent surge in compliance discourse reflects industry progress, signaling a transition from the wild west phase toward self-discipline and self-regulation. Drawing from her own experience, she stated: "Companies that hold licenses are not necessarily compliant or self-disciplined, and Binance following the gold standard of compliance may not necessarily obtain a license." She stressed that Binance's goal is "the stars and the sea," not wrestling with peers in the mud, and therefore sets the highest standards for itself.
This statement comes against the backdrop of the upcoming end of the transitional period under the EU's Markets in Crypto-Assets (MiCA) regulation. According to BlockBeats, the MiCA transitional grace period ends on July 1, 2026. The European Securities and Markets Authority (ESMA) has previously urged unauthorized crypto-asset service providers (CASPs) to exit related businesses in an orderly manner before the transition ends. This means that all crypto service providers operating in the EU, whether licensed or not, must strictly comply with the MiCA framework.
Industry Impact and Outlook
As the world's largest cryptocurrency exchange, Binance's regulatory compliance moves are always market focal points. He Yi's remarks clarify Binance's strategy in the face of tightening EU regulation: adhere to the highest compliance standards even without a license, thereby earning regulatory trust over time. This approach contrasts with peers who prioritize obtaining licenses first and then addressing compliance. With MiCA's full implementation, the EU crypto market will enter a more regulated environment, and Binance's ability to continue operations post-transition will depend on whether its compliance efforts gain recognition from member state regulators.
Notably, ESMA's call sends a clear signal: unauthorized CASPs should exit in an orderly manner before July 2026, or face enforcement actions. Binance has obtained licenses or registrations in several jurisdictions globally, but regulatory uncertainty remains in key EU countries. He Yi's comments serve both as a communication gesture to the outside world and as a motivational message to the internal team.