Why EU Regulators Are Blocking Binance's MiCA License

Europe's pre-MiCA history with Binance gave regulators in Greece, Ireland, and Latvia a file to consult. Binance exited the Netherlands in 2023 after failing to register, following a fine from the Dutch central bank for operating without authorization. In Germany, the company withdrew its BaFin custody-license application after regulators reportedly made clear they would not grant it. Belgium's FSMA ordered Binance to stop providing virtual-currency services from outside the European Economic Area, noting Binance had not demonstrated which legal entities were offering services or whether they were properly authorized. The FSMA also pointed to Binance's own terms, which referenced 27 corporate entities, 19 of them outside the EEA. French prosecutors opened a judicial probe in 2025 into allegations of money laundering and tax fraud, which Binance denied. MiCA consolidates that accumulated record into a single authorization decision that cannot be reversed at the border.

Why No Regulator Wants the First Passport

Zhao stepped down as CEO in November 2023 as part of the DOJ settlement. He remains a major beneficial owner. Reuters reported that European regulators were examining his continued influence over the company. Binance's EU regional head, Gillian Lynch, told Reuters that Zhao is fully removed from company management. MiCA's fitness standards go beyond job titles. They require regulators to assess whether management and qualifying shareholders exercise effective control consistent with sound governance, client protection, and market integrity. A European authority approving Binance must document and supervise a group structure that proves the EU entity is insulated from informal control, reputational contagion, or group-level interference from outside the bloc.

France, Italy, and Austria have each warned that differences in national supervision could allow crypto firms to choose the regulator that imposes the lightest scrutiny. French officials have explicitly described regulatory shopping as a search for the weakest link. A regulator in Greece, Ireland, or Latvia would carry a bloc-wide political judgment and would absorb reputational exposure if that decision later proved wrong. Reports noted that regulators in Ireland, Latvia, and Greece coordinated closely, pointing to a collective supervisory posture.

If any EU member state approves Binance after the company implements verifiable governance reforms, MiCA serves as a normalization path for large exchanges with compliance liabilities. If no regulator accepts that burden, the result is a sustained period of restricted EU activity. Binance users would be directed to sell or withdraw while competitors with existing MiCA licenses absorb European market share.

Chainalysis estimated that illicit cryptocurrency addresses received at least $154 billion in 2025, with stablecoins accounting for 84% of illicit transaction volume.