Binance Vows to Stay in Europe After Withdrawing Greek MiCA License Application

Binance, the world's largest cryptocurrency exchange, has set out its position on its European strategy and clash with regulators after withdrawing its application in Greece for a license under the European Union's Markets in Crypto-Assets framework, or MiCA.

Jillian Lynch, Binance's head of Europe and the UK, told CoinDesk in an interview published on July 3 that MiCA's success should be judged not by the mere existence of a regulatory framework, but by how many operators come under it. The real test, she said, is not whether rules are in place, but whether companies are actually regulated under them.

Binance withdrew the MiCA license application it had submitted to Greek authorities last week. It then notified users in EU member states that some services would be suspended and new registrations halted ahead of a July 1 service cutoff. Binance had internally set a 30-day notice period, but the announcement came with fewer than 10 days remaining before the deadline.

Lynch said there had been no problems with the Greek licensing process itself. Greek authorities informed Binance in April that its application was complete, and the company had expected approval in early June. But board meetings were repeatedly delayed, ultimately prompting Binance to withdraw the filing. There was nothing missing from the application and no unresolved material issue, she said, adding that Binance had in fact been told the opposite.

The Wall Street Journal reported that the European Securities and Markets Authority had privately advised national regulators to reject Binance's MiCA applications and had raised concerns about compliance with financial-crime rules, including anti-money laundering requirements. Lynch disputed that account, saying it misrepresented how Binance identifies, reviews and acts on flagged accounts. The accounts in question were blocked as soon as suspicious transaction patterns were detected and reported to law enforcement, she said. She also rejected allegations that Binance ignored potential sanctions breaches or retaliated against internal compliance staff, calling those claims untrue.

Lynch said Binance spends more than $300 million a year on compliance and employs more than 1,500 compliance personnel worldwide. She added that the company had also worked with the Hellenic Capital Market Commission for several months.

Binance also made clear it has no intention of leaving Europe. The company will remain in the region and is firmly committed to operating under regulation, Lynch said, adding that the current obstacle is temporary and that Binance will return to the market. She said the next license application should not take long because much of the procedural work with Greek authorities has already been completed.