Binance, the world’s largest cryptocurrency exchange, is on the verge of losing access to the European Union after its application for a Markets in Crypto-Assets (MiCA) license in Greece faced rejection, according to Reuters reporting on the matter.
The decision, if confirmed, will prevent Binance from offering services across the 27-member bloc when the MiCA transition period ends on July 1. Under the new regulatory framework, crypto firms must secure approval from a national regulator to obtain EU-wide passporting rights.
Binance filed its application through a Greek entity earlier this year, placing the country as its regulatory base in Europe. The exchange pointed to Greece’s workforce and operating environment as factors behind the choice. Co-CEO Richard Teng had expressed confidence that the company would meet the requirements before the deadline.
Two sources told Reuters that Greece’s Hellenic Capital Market Commission is set to reject the application. The regulator declined to comment, citing confidentiality rules. Binance said it has not received any formal notification of a rejection and maintains that its submission meets MiCA standards.
The firm said it believes it complies with the framework and has not been told otherwise by the Greek authority.
Despite this stance, the timeline leaves little room for delays. Without a license in place by the end of June, Binance would have to halt services to EU customers or risk enforcement action from national regulators. This could include fines or restrictions limiting access across key markets such as France, Germany and Italy.
Following the report’s release, Binance sought to reassure users of X regarding its regulatory status in Europe. In a series of filings, the exchange said it remains committed to the region and is working to minimize disruption as it navigates the approval process.
“Binance remains committed to its European users and will continue to operate in accordance with applicable law,” the exchange writes.
EU, MiCA, Binance and crypto protection
The EU has emerged as an important test case for global crypto regulation. MiCA introduces a single rulebook for businesses with digital assets covering areas such as consumer protection, capital requirements and governance. The scheme is designed to replace a patchwork of national rules with a unified system.
Binance has faced regulatory pressure in several jurisdictions over the past few years, including the US and the UK. The outcome in Europe could shape its global strategy as it seeks to align operations with stricter oversight.
Competitors that have secured MiCA licenses, including Coinbase and Kraken, will benefit if Binance leaves the region. A shift in market share may follow as users migrate to platforms that can offer uninterrupted access under the new regime.
The potential loss of the EU market also raises questions about liquidity and product availability on Binance’s platform. Europe represents a large base of retail and institutional users, and any disruption could affect trading volume and token flows.