Binance Faces MiCA Setback as Europe’s Crypto Gate Narrows

TLDR

• Binance said MiCA should be judged by how many crypto firms it brings into regulation, not by how many it excludes.
• Binance withdrew its MiCA license application in Greece before the July 1 deadline after months of regulatory talks.
• Gillian Lynch said Binance remains committed to Europe and plans to seek a new licensing strategy.
• Lynch said Binance had a complete Greek application and was not aware of any material issue with the filing.
• The MiCA transition could force millions of EU crypto users to move to approved platforms.

Binance said MiCA should prove its value by licensing crypto firms, not by forcing them outside Europe. The exchange withdrew its Greek application before July 1, causing EU user limits. Gillian Lynch said Binance remains committed to Europe and will seek a new path.

MiCA Needs Licensed Players

Gillian Lynch, Binance’s Europe and U.K. head, said MiCA needs broad participation. She said the rulebook matters, but regulated firms matter more.

Binance withdrew its MiCA application in Greece after months of talks with regulators. The decision came before the July 1 deadline for crypto providers. The company told affected users it would suspend services and stop registrations.

Lynch said she supports national regulators granting MiCA licenses across the EU. However, she backed a stronger ESMA role for the largest firms. She said the framework can become a standard when it brings firms inside regulation.

Greek Delays Shape Setback

Lynch said Binance expected authorization in early June after positive signals in April. She said Greek officials had deemed the application complete.

She said board meetings faced delays before the exchange withdrew the filing. The Hellenic Capital Market Commission did not immediately comment. Lynch said she knew of no issue that weakened the application.

Binance spends over $300 million yearly on compliance, according to Lynch. She said the company employs more than 1,500 compliance staff worldwide. She added that the exchange spent months working with Greece’s regulator on MiCA.

Compliance Claims and User Moves

The Wall Street Journal reported that ESMA advised regulators against approving Binance applications. The report cited financial-crime controls and account reviews. Lynch rejected the report and said it mischaracterized the company’s actions.

She said Binance offboarded accounts after finding complex activity patterns. She added that the company reported the accounts to police. Lynch also called sanctions and retaliation claims “categorically false.”

MiCA has pressured crypto providers across Europe. OKX CEO Erald Ghoos said 80% of EU crypto firms may not survive. Swissborg’s Alex Fazel said 10 million users may move to approved platforms.

She said Binance believes it can return as a regulated European market participant.

The post Binance Faces MiCA Setback as Europe’s Crypto Gate Narrows appeared first on CoinCentral.