Binance is facing a critical test in Europe, with its ability to serve customers across the European Union reportedly at risk as the bloc’s crypto licensing deadline approaches.
The world’s largest crypto exchange is expected to lose permission to operate in the EU from next month because its application for a Markets in Crypto-Assets Regulation, or MiCA, license in Greece is set to be rejected, Reuters reported, citing two people familiar with the matter.
Binance applied through Greece’s Hellenic Capital Market Commission, seeking authorization that would allow it to “passport” services across all 27 EU member states. Under MiCA, crypto-asset service providers must obtain approval from a national regulator in one EU country to continue serving clients across the bloc after the transitional period ends.
That period expires on June 30. From July 1, firms without a MiCA authorization are expected to stop offering crypto-asset services to EU clients.
The reported setback is significant because MiCA was designed to replace fragmented national crypto regimes with a single European framework. For exchanges, a license in one member state can become the gateway to the entire EU market. For regulators, the same mechanism raises the stakes: a weak approval in one jurisdiction can affect customers across the bloc.
Reuters did not report a detailed reason for the expected Greek rejection. The HCMC declined to comment, citing confidentiality rules, while Binance said it believed it had met MiCA requirements and had worked with regulators for 18 months. The company also said it understood that the Greek regulator had completed its review and considered the application compliant.
In a separate update, Binance said it remains committed to European users and to securing a MiCA license. The company said it would provide more information before June 30 and that its priority was to support an orderly process and minimize disruption for users.
The episode comes as European regulators are taking a tougher line ahead of MiCA’s full implementation. The European Securities and Markets Authority has told crypto firms without authorization to prepare orderly wind-down plans, including arrangements to offboard clients without causing undue harm. France’s AMF has also warned that firms without EU authorization must stop operating from July 1 or face enforcement action.
For Binance, the timing leaves little room for error. If the Greek application is rejected and no alternative authorization is secured in time, the exchange could be forced to restrict or wind down services for EU users, at least until it obtains approval elsewhere in the bloc.
The case also highlights a broader tension in Europe’s crypto rulebook. MiCA gives the industry a common licensing regime, but national regulators remain responsible for approving applications. Some regulators have already expressed concern that firms may seek authorization in jurisdictions perceived as more flexible, then use that approval to operate across the EU.
Binance had positioned Greece as its preferred European regulatory base. Earlier this year, co-CEO Richard Teng said the country’s workforce and security profile made it attractive as a European hub. A rejection would therefore mark a sharp reversal for the exchange’s EU strategy.
The company has faced extensive regulatory scrutiny in recent years, including in the United States and Europe. Its founder Changpeng Zhao stepped down as CEO in 2023 after Binance pleaded guilty to U.S. anti-money-laundering and sanctions violations and agreed to pay more than $4 billion in penalties. Binance has since sought to present itself as a more compliance-focused company under new leadership.
The immediate question is what happens to EU customers if the Greek approval does not arrive before the deadline. Binance has not yet provided detailed next steps, but its public comments suggest it is preparing users for the possibility of service changes.
For the European crypto market, the decision will be watched closely. A rejection would show that MiCA is not only a passporting framework, but also a meaningful supervisory filter for the largest global exchanges seeking access to the bloc.