Binance Faces EU Setback as MiCA License Application Nears Rejection

Binance is set to lose its license to operate in the European Union starting in July after its MiCA license application in Greece faces imminent rejection. The Hellenic Capital Market Commission is about to deny the authorization that would allow the exchange to operate across all 27 countries in the bloc, two people familiar with the matter said.

The rejection blocks Binance from passporting its license under the Markets in Crypto-Assets framework that took full effect in January. Without a home-state regulator's approval, Binance would need to apply for licenses in each EU country individually or suspend services to EU clients when the current transitional period ends in July.

The Greek commission's decision follows a review that raised concerns about Binance's governance and anti-money laundering controls, the people said. Binance had selected Greece as its EU hub, filing its application last year as part of a broader compliance push.

Binance can appeal the ruling or refile with another member state's regulator. The exchange could seek approval in a larger EU member state such as France or Germany. That would restart the application process and delay passporting by months. The setback is a practical blow to its single-market ambitions. Coinbase and Crypto.com have already secured MiCA licenses through France and Malta, giving them passport rights across the bloc.

The rejection now gives concrete form to a warning Binance itself issued earlier this year about how a denial could fragment liquidity across the region. Binance Warns EU License Rejection Could Weaken Regional Liquidity

The decision arrives just as the EU's transitional period for non-MiCA compliant firms ends in July. Exchanges without a license from any member state must stop serving EU clients by that date. Binance counts millions of registered users in the EU, with a significant portion of its spot trading volume originating from the bloc.

For Binance's EU retail clients, the loss of MiCA access would mean a shift to the exchange's global platform, where different custody rules and trading protections apply. The EU is Binance's second-largest market by registered users after Asia. Competitors such as Coinbase and Crypto.com already hold passport rights and stand to gain from any shift in volume. Traders on Binance's platform said the uncertainty may push some EU clients to move assets to licensed competitors before the July deadline.

The rejection also creates a precedent for non-EU exchanges seeking a regulated foothold under MiCA. The framework requires a home-state regulator to conduct thorough vetting. Greece's skepticism risks deterring other large exchanges from using smaller member states as entry points. Binance has invested in compliance infrastructure in Europe, including a new Paris office and a local leadership team, to secure regulatory approvals across the bloc.

The Hellenic Capital Market Commission did not respond to a request for comment. Binance declined to comment on the pending decision. The commission is expected to make a final ruling in the coming weeks.