Binance Vows EU Commitment as License Application Faces Rejection

Binance remains committed to securing a license so that its cryptocurrency exchange can continue operating in the European Union (EU), the company said in a Tuesday (June 16) blog post.

The company published its post on the same day that Reuters reported, citing unnamed sources, that Binance’s application for a license is about to be turned down by Greece’s market regulator, the Hellenic Capital Market Commission (HCMC), meaning that the company will lose permission to offer services to EU clients at the end of June.

According to the Reuters report, the regulator declined to comment on the report due to confidentiality rules.

Under the new rules of the EU’s Markets in Crypto-Assets Regulation (MiCA), crypto companies that do not secure a license by the end of June will not be allowed to continue operating in the EU, per the report.

Binance said in its blog post that it submitted a comprehensive application for a MiCA license, has worked with the HCMC for many months, and will provide an update to the European users of its exchange before June 30.

“Our understanding is that the HCMC completed its review of the application and considered it compliant with MiCA requirements,” the company said in the post. “Our understanding is also that the application was subject to review at European Securities and Markets Authority (ESMA) level.”

“Our priority is to minimize disruption and keep users informed,” Binance said. “We will provide further details directly as additional information becomes available, including in relation to next steps and available options.”

Binance said it will provide an update before June 30.

PYMNTS reported Monday (June 15) that the July 1 deadline for compliance with MiCA is set to impact crypto exchanges and their users.

CryptoSlate reported Sunday (June 14) that thousands of unlicensed crypto firms are expected to stop serving EU customers or shut down when MiCA’s July 1 deadline arrives.

There were 3,000 registered crypto firms across the EU, but as of May, only 194 were licensed under MiCA, according to the report.

PYMNTS reported in April that the ESMA reaffirmed that the MiCA grace period was closing fast and that the transitional window for the policy framework expires on July 1.