Binance’s Greece strategy unravels weeks before MiCA deadline

Binance’s attempt to establish Greece as its regulatory gateway into the European Union appears to be collapsing just weeks before the bloc’s MiCA licensing deadline.

According to a June 16 Reuters report citing two sources familiar with the matter, Greece’s capital markets regulator is preparing to reject Binance’s application for a Markets in Crypto-Assets Regulation [MiCA] license.

Without MiCA approval, Binance would lose the ability to legally offer services across the European Union once the new framework becomes fully enforceable at the end of June.

The development marks a dramatic reversal from Binance’s earlier push to position Greece as its long-term European regulatory base.

Binance previously positioned Greece as EU foothold

In January, Binance publicly confirmed it had established a Greek holding company called Binary Greece. Also, it was working closely with the Hellenic Capital Market Commission [HCMC] on a MiCA application.

At the time, the exchange described Greece as an attractive jurisdiction due to its economic growth, regulatory environment, and labor force.

The company had reportedly spent more than 18 months working through the licensing process.

Reuters now reports that the application is expected to be rejected despite Binance maintaining that it satisfied MiCA compliance requirements.

“HCMC has given no formal indication of the contrary,” a Binance spokesperson told Reuters.

The HCMC declined to comment on the application due to confidentiality rules.

MiCA enforcement pressure intensifies across Europe

The potential rejection could become one of the first major enforcement tests under Europe’s new MiCA framework.

MiCA requires crypto firms operating across the EU to secure authorization from at least one member-state regulator before they can legally “passport” services throughout the bloc.

However, the framework has already generated political tension inside Europe over concerns that some companies could seek approval from jurisdictions perceived as more flexible.

France’s financial regulator previously warned that firms might use lighter-touch jurisdictions to gain broader EU market access. At the same time, the European Securities and Markets Authority has pushed for more centralized oversight of crypto firms operating under MiCA.

If Binance loses its Greek application despite its scale and market dominance, the decision could signal that European regulators intend to apply stricter scrutiny to major global exchanges with complex regulatory histories.

Rejection could reshape competition in Europe

The decision could also reshape competitive dynamics across the European crypto market.

Several large firms, including Coinbase, Kraken, Bitstamp, Circle, eToro, and Revolut, have already secured MiCA-related approvals or regulatory positioning inside the bloc.

A Binance rejection could strengthen those firms’ market share as MiCA transitions Europe toward a more tightly regulated crypto environment.

The exchange remains the world’s largest crypto trading platform by volume. It has spent the past two years rebuilding relationships with regulators worldwide after facing scrutiny over anti-money laundering controls and compliance practices across multiple jurisdictions.

Binance pushes back against MiCA concerns

Following the Reuters report, Binance publicly defended its MiCA efforts and said it remains committed to operating in Europe.

The exchange said it had worked “constructively with regulators” over the past 18 months and claimed its application had also been reviewed at the European Securities and Markets Authority level.

Binance additionally warned that delays or inconsistencies in the MiCA authorization process could weaken liquidity, reduce competition, and push crypto activity outside the European Union.

“MiCA was designed to create a harmonised European framework for digital assets,” the company said in a series of posts on X.

Binance added that it intends to support an “orderly process” for users and plans to provide another update before June 30.

Final Summary

• Reuters reported that Greece is expected to reject Binance’s MiCA license application weeks before the EU’s licensing deadline.
• The development could become one of the first major enforcement tests under Europe’s new crypto regulatory framework.