Binance's MiCA License Rejection Would Cut EU Access

Binance's application for a license under the European Union's Markets in Crypto-Assets Regulation is about to be rejected by Greece's market regulator, Reuters reported Tuesday, citing unnamed sources. The rejection would mean Binance loses permission to offer services to EU clients when the MiCA deadline hits July 1.

Binance responded the same day with a blog post. The company said it submitted a comprehensive application, worked with the Hellenic Capital Market Commission for months, and will provide an update before June 30.

The HCMC declined to comment due to confidentiality rules, Reuters reported.

The stakes are high. The EU is one of the world's largest crypto markets. Losing access would remove a major source of trading volume for Binance, which already faces regulatory setbacks in the U.S. and UK. Rival exchanges with MiCA licenses, such as Coinbase and Kraken, could pick up market share. Binance's own token, BNB, may face selling pressure if the news confirms a forced exit.

MiCA takes full effect July 1. Crypto firms without a license by that date cannot operate in the EU. As of May, only 194 of the roughly 3,000 registered crypto firms in the region had secured a MiCA license, according to CryptoSlate. Thousands of unlicensed firms are expected to stop serving EU customers or shut down.

Binance's blog post suggests the company believes its application was compliant. That could mean it will appeal the HCMC decision or seek a license through another EU member state. The company said it will provide further details before June 30, including next steps and available options.

For ongoing coverage of crypto regulation and market shifts, see our crypto market analysis.