Binance looks for new EU license path after Greece bid fails

Binance's application for a crypto license in Greece failed, pushing the exchange to find other ways to operate under the European Union's MiCA regulation, Reuters reported Wednesday.

The company confirmed it remains committed to the EU market. Under the Markets in Crypto-Assets framework, a license from any one member state allows passporting across the entire 27-country bloc. Greece's rejection leaves Binance without that direct entry point.

The setback deepens Binance's regulatory challenges in Europe. The exchange has already pulled out of several national markets, including the Netherlands and Britain, after local regulators pushed for tighter oversight. MiCA, which took full effect this year, requires crypto firms to get approval from a designated national authority before serving the whole EU.

Binance already holds a registration in France as a digital asset service provider, a license it obtained in 2022. Whether that will automatically convert into a MiCA license is not clear. The company said it is evaluating options in other member states but has not named them.

The failed Greece application arrives as the EU steps up enforcement of crypto rules. MiCA sets standards for reserve management and disclosure, with penalties for firms that fall short. For Binance, securing a license anywhere in the EU would restore its ability to market and offer services across the region, a market it has long prioritized.

Other major exchanges have moved faster. Coinbase secured a MiCA license in Ireland last year. Kraken obtained one in Germany. Binance's delay could cost it market share among European institutional clients who require regulated counterparties. Europe is one of the largest crypto markets outside the U.S., and compliance is increasingly a selling point for institutional services. Several other exchanges, including Crypto.com and Bitstamp, have also passed MiCA scrutiny. The growing list of compliant firms pressures Binance to act quickly or risk losing trust among investors still cautious after the 2022 FTX collapse.

MiCA's implementation has been uneven. France and Germany have led the way, designating national authorities and processing applications. Greece, by contrast, has been slower to set up its framework, making it unclear whether the rejection was due to gaps in Binance's application or the country's own readiness. The company declined to comment on the specifics of the Greek decision, Reuters said.

Binance's France subsidiary, registered with the Autorité des Marchés Financiers, may serve as the foundation for a MiCA application. The company has also set up local offices in several EU states, including Lithuania and Italy, to handle compliance and business development. Whether any of those local operations can support a license application remains an open question.

MiCA was adopted in 2023 and came into full force in June 2024. The transition period for existing firms ends in 2025. Binance faces a limited window to secure a license before the deadline locks in the competitive landscape. Firms that miss the transition may need to wind down EU operations or face restrictions.

Binance's broader regulatory struggles add context. The exchange faces enforcement actions from the U.S. Securities and Exchange Commission and has been banned from offering services in several Asian jurisdictions. The EU represents a chance to rebuild its reputation through compliance with a clear, unified rulebook.

The company's EU strategy suggests it sees the region as central to its global ambitions. Binance said it is working to meet MiCA's requirements and remains focused on finding a compliant path forward.