Binance Faces EU Exit as MiCA License Approval Doubts Grow

Binance could lose access to European Union clients within weeks. Greece's regulator is set to reject the exchange's MiCA license application, two people familiar with the process said.

The EU's Markets in Crypto-Assets framework requires crypto firms to hold authorization from a member-state regulator by the end of June. Without it, a company cannot serve customers across the bloc from July. Binance has been pursuing Greece as its EU gateway since 2023, when it filed for a license with the Hellenic Capital Market Commission.

A rejection would leave Binance scrambling for an alternative EU base. The exchange has also registered in France and Italy, among other EU markets. Those approvals cover existing operations under transitional regimes, not the full MiCA passport. The temporary nature of those approvals means Binance needs a full license from a single EU regulator to continue operating across the bloc beyond July. Starting over in another jurisdiction would mean a fresh application timeline measured in months, not weeks.

Binance said in a statement that it has worked closely with regulators throughout the process and believes it has met all MiCA requirements. The exchange added that Greece's regulator has not formally communicated any negative decision. The HCMC declined to comment.

EU customers represent a meaningful share of Binance's retail volume. Losing the bloc would push users toward competitors that already hold MiCA licenses, such as Coinbase's European entity and Crypto.com's Maltan-registered unit. The timing is tight. Even if Binance secures approval elsewhere before the June deadline, operational migration would require relocating custody and compliance systems. Reporting infrastructure would also need to be moved.

Greece's reported position follows a pattern of caution from the HCMC. The regulator has been among the more conservative EU watchdogs on crypto licensing. Binance's global regulatory history, including settlements with U.S. authorities over anti-money-laundering failures, has made some European regulators wary of granting it a passport.

For traders, the immediate risk is service disruption. If Binance loses its EU authorization, clients in the bloc would likely face withdrawal-only mode or forced account migration to a non-EU entity. That could trigger tax events and liquidity constraints. The exchange has faced similar situations before. It left the UK in 2021 after the FCA ban and exited Canada in 2023. The EU is a far larger market.

A rejection would be the first high-profile denial under MiCA. The decision is being watched by other exchanges awaiting their own approvals, two industry sources said.

Binance has not disclosed a backup plan. The company said it remains committed to the EU and expects a constructive dialogue with Greek authorities. The HCMC has not set a public deadline for its decision.