- Sources reveal that Binance risks losing its business in the EU, as its MiCA application via a Greek regulator faces potential rejection.
Binance, the world’s largest crypto exchange by trading volume, risks getting the boot from the European Union (EU) sphere of influence. It follows the company’s recently revealed hurdles in securing Markets in Crypto-Assets Regulation (MiCA) approval in one of its member countries.
Binance’s Potential Exclusion from the EU
According to Reuters, Binance processed its MiCA application in Greece through the Hellenic Capital Market Commission (HCMC), the country’s market and securities regulator. Several sources claim that it filed its documents around January this year.
If approved, it would have allowed Binance to leverage MiCA’s passporting rules to operate across its 27 member nations without applying for individual licenses in each location. However, citing “two people familiar with the matter,” the news publication stated that the company risks rejection from its filing in Greece.
As the grace period for MiCA’s full enforcement ends this June, Binance could lose its permission to offer its products and services in the EU by July. It would join the likes of Tether, the world’s largest stablecoin issuer, in losing its key advantage in the region.
The Company’s Response
The sources didn’t mention the specific reason why the HCMC would reject Binance’s MiCA bid. On the other hand, the exchange vehemently denied the latest reports.
A spokesperson indicated that the Greek regulator neither issued any formal communication nor posted any announcement declaring its rejection of Binance’s regulatory filing. Even Richard Teng, the company’s CEO, assured European users about their commitment to operating on MiCA-compliant rails.
“We are committed to our European users and to operating under a clear, fair, and harmonised MiCA framework,” Teng posted on his social media account on Tuesday. “We are dedicated to securing our MiCA licence and remain ready to operate under a fair, predictable, and genuinely harmonised European framework.”
Teng commented that his group will continue to update users about the progress of its MiCA license application. He also guaranteed that all their customers’ assets are safe.
Binance’s Strong Presence in the EU
Binance serves over 300 million customers across 180 countries. It’s unclear how many users the company has in the EU region, though.
Nonetheless, several analysts noted that Binance has a strong presence in Europe. It notably recorded strong adoption in the area, with a market penetration of approximately 51% within the jurisdiction.
What’s your Reaction?
+1
5
+1
2
+1
0
+1
0
+1
0
+1
0
+1
0
