Greece Set to Deny Binance MiCA License, Threatening EU Exit

Binance's plan to keep serving European Union customers legally is in trouble. Two people familiar with the matter told Reuters that Greece's capital markets regulator is preparing to reject the exchange's application for a Markets in Crypto-Assets (MiCA) license.

Binance filed its application with the Hellenic Capital Market Commission (HCMC) in January, choosing Athens over Frankfurt or Amsterdam. Co-CEO Richard Teng explained the choice at a Tokyo forum in February, citing Greece's labor pool and security profile as factors that gave it an edge over bigger financial centers.

The bet carried a known risk. At the time of the application, Greece had not approved a single MiCA license. Germany had granted more than 45, and the Netherlands had issued 22, according to European Securities and Markets Authority data.

A Binance spokesperson said the company had worked constructively with regulators over the past 18 months and believed it had satisfied MiCA requirements. "HCMC has given no formal indication of the contrary," the spokesperson said.

The HCMC has not commented, citing confidentiality rules.

If the rejection becomes formal, Binance would have no pathway to continued operations anywhere in the 27-member bloc. The MiCA regulation requires every crypto-asset service provider operating in the EU to hold a valid license by July 1, 2026. Binance's existing national registrations in countries like France expire once that deadline passes.

More than 50 crypto companies now hold MiCA licenses across the EU. Competitors including Kraken, KuCoin, Coinbase, and OKX have already secured their approvals and can operate across the European Economic Area.

Binance set up a local holding company, Binary Greece, to anchor its European operations around the same time it submitted the application. The exchange said it would "provide a further update before 30 June 2026" and is working to "minimize disruption and keep users informed."

A formal rejection would leave Binance with two options: appeal the HCMC decision, or apply through a regulator in another EU member state with less than two weeks before the July 1 cutoff. Teng acknowledged the timeline risk in February, telling reporters he would "leave it to the EU to determine" whether Binance secures its license before the deadline.

The Greek rejection would not be an isolated regulatory headache. France's Autorité des Marchés Financiers previously identified Binance among over 90 firms operating in the country without proper MiCA authorization.

Any delay or distortion in the MiCA authorization process risks reducing liquidity, weakening competition, and pushing activity outside the EU. The July 1 deadline is a hard cutoff, not a soft transition.