Binance faces EU access risk as Greek MiCA decision looms

Binance is on track to lose authorization to serve clients across the European Union starting July 1. Reuters reported, citing two people familiar with the matter, that Greece's Hellenic Capital Market Commission is expected to reject the exchange's application for a license under the Markets in Crypto-Assets Regulation, known as MiCA.

The rejection would block Binance's ability to passport services to all 27 EU member states. Under MiCA, a crypto firm must hold approval from a national regulator in one EU country to offer services across the bloc. The transitional period ends June 30.

Binance said it believes it has met MiCA requirements and worked with regulators for 18 months. The company also said it understood the Greek regulator had completed its review and considered the application compliant. The HCMC declined to comment, citing confidentiality rules.

The European Securities and Markets Authority has told crypto firms without authorization to prepare orderly wind-down plans. France's AMF has warned that firms without EU authorization must stop operating by July 1 or face enforcement action.

The timing leaves little room for error. If the Greek application is rejected and no alternative authorization is secured before the deadline, Binance could be forced to restrict or withdraw services for EU users. The exchange has not specified contingency plans beyond saying it remains committed to European users and will provide more information before June 30.

The decision comes against a backdrop of Binance's regulatory history. In 2023, Binance pleaded guilty to U.S. anti-money-laundering and sanctions violations and agreed to pay more than $4 billion in penalties. Founder Changpeng Zhao stepped down as CEO. Since then, the company has tried to present itself as a compliance-focused operation.

Earlier this year, co-CEO Richard Teng said Greece's workforce and security profile made it attractive as a European hub. A rejection would mark a reversal for that strategy.

For the broader European crypto market, the outcome tests how tightly MiCA's approval process will be applied. Some regulators have expressed concern that firms might seek authorization in lenient jurisdictions and then passport across the bloc. A rejection of Binance's application would signal that national supervisors are prepared to say no to the largest player.

The immediate unknown is whether Binance can find an alternative EU regulator willing to authorize its services before June 30. Coinbase and Kraken have already secured licenses in Ireland and Germany respectively. If Binance cannot do the same, its EU operations will contract sharply.

For the exchange's native token BNB, the decision is a near-term catalyst. The June 30 deadline will not move.