By Lefteris Papadimas and John O’Donnell
BINANCE, the world’s largest crypto exchange, is set to lose permission to serve EU clients from next month because its licence application is about to be rejected, according to two people familiar with the matter.
Under new EU rules, called MiCA, crypto firms have until the end of June to obtain a licence to allow them to keep servicing clients across the bloc. Binance’s application, made to Greece’s market regulator, is set to be turned down, the people said.
European regulators have been attempting to rein in crypto exchanges, which allow people to trade cryptocurrencies such as bitcoin around the globe.
Under MiCA, crypto companies have to apply for licences from regulators in individual EU countries, which they can use as a “passport” to operate throughout the 27-nation bloc.
At stake is oversight of the multi-trillion-dollar crypto industry, which regulators have long warned could destabilise markets and harm investors if not properly supervised.
The Greek rejection would mean Binance will not be given the green light to operate in the EU, leaving the fate of Binance’s customers based in the bloc uncertain.
Binance posted on X that it intends to “support an orderly process and minimise disruption to our users”, without giving further details.
Binance and EU regulators
A spokesperson for Binance, which has 300 million customers worldwide, earlier said it has been pursuing a MiCA licence and had worked with regulators for 18 months.
Binance believes it has met the requirements to be MiCA authorised, the spokesperson said. It understood that Greece’s HCMC (Hellenic Capital Market Commission) had completed its review of the application and it was considered compliant.
“HCMC has given no formal indication of the contrary,” the spokesperson said.
Binance co-CEO Richard Teng said in February that Greece’s labour force and security profile gave it the edge over larger financial centres for its regulatory home in Europe.
His predecessor and Binance founder Changpeng Zhao, known as CZ, was pardoned by U.S. President Donald Trump last year after earlier pleading guilty to violating U.S. money-laundering laws.
HCMC declined to comment on Binance’s application, citing confidentiality rules. Without a licence, Binance would not qualify to continue operating in the EU from the start of July.
The EU rules have brought regulatory oversight to the crypto industry’s operations in Europe, even as the Trump administration has eased U.S. regulation.
“We will provide a further update before 30 June 2026,” Binance said, adding that delays in the MiCA authorisation process risk pushing activity outside the EU.
Cryptocurrencies are a form of digital money, recorded on a kind of ledger called blockchain.
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