Binance MiCA licensing plans remain open. The exchange declined to address a report about ECB intervention. Specifically, the report concerns its failed Greek application.
Why Binance MiCA licensing plans remain open
A Wall Street Journal report appeared on September 18. It said ECB President Christine Lagarde intervened. According to the report, a Greek regulator told Binance about the intervention. The vice chair of Greece’s HCMC reportedly said Lagarde asked the prime minister not to approve. The account has not been publicly confirmed. Lagarde, the ECB, and the Greek regulator have not confirmed it.
“We will not comment on speculation,” a Binance spokesperson said. Nevertheless, the exchange said it remains committed to MiCA authorization. “In Europe, Binance remains committed to operating on a long-term, compliant basis,” the spokesperson said.
Greek application reportedly neared approval
Greek officials informed ESMA in early June. According to the Journal, the HCMC intended to approve Binance’s application. The exchange had prepared for approval weeks earlier. It drafted an announcement calling the authorization a major milestone. Co-CEO Richard Teng planned to travel to Athens. He expected a meeting and photograph with Prime Minister Mitsotakis. Approval from Greece would have given Binance a passporting route. That route would let it provide covered crypto services across the EU.
The process changed course before authorization. The Journal reported that Lagarde raised compliance concerns. These included Binance’s 2023 guilty plea in the United States. The plea covered anti-money laundering and sanctions violations. Binance agreed to pay roughly $4.3 billion in its U.S. settlement. Stablecoin concerns were also part of discussions. Lagarde has pushed for a stronger European payments system. The ECB is developing a digital euro. Meanwhile, dollar-denominated stablecoins remain dominant in global crypto markets.
The reported intervention came despite existing MiCA rules. Under those rules, licensing authority rests with national regulators. Once one member state authorizes a provider, the license can work elsewhere in the bloc.
Binance withdrew Greek application before MiCA deadline
Questions about the application surfaced publicly by mid-June. Binance faced a potential rejection of its Greek application. The exchange said it had received no formal denial from the HCMC. Binance said it worked with regulators for around 18 months. It submitted what it considered a complete application. Its understanding was that the HCMC completed its review. Binance believed the filing complied with MiCA requirements. The application had also undergone ESMA-level review.
Reports of Lagarde’s involvement emerged soon afterward. The Greek licensing route stalled as the July 1 deadline approached. That left little time to obtain authorization. Binance formally withdrew the application on June 24. The company cited a review of the status and timing. It confirmed it would pursue authorization in another EU member state. It did not identify the jurisdiction.
The exchange told users their assets would remain safe and accessible. It warned that services could change by country and account status. Binance said its long-term plan was to secure a MiCA license. It wanted to maintain operations in Europe. The withdrawal came days before the July 1 deadline. Crypto firms relying on national registrations needed authorization by then. Binance subsequently suspended several EU services. It had failed to secure a license in time.
Binance remains without MiCA authorization
The licensing issue continued beyond the July deadline. Binance was still opening and verifying some European accounts. This happened more than seven weeks later. Yet it remained absent from ESMA’s register of authorized providers. Tests in August confirmed this. Some restrictions remained during those tests. One account opened through Austria using a Spanish identity document. It could not deposit euros through bank transfer. A third-party provider flagged an address mismatch. Cryptocurrency deposits remained available nevertheless.
By early September, Binance was still serving some EU customers. It used regulatory provisions including reverse solicitation. That can permit services when customers approach an overseas provider. The company routed some activity through an Abu Dhabi entity. Meanwhile, the exchange continued seeking European authorization. Binance’s EU operations remained under regulatory attention. ESMA sought confirmation that the company was winding down activities. Those activities require MiCA authorization.
Binance has not announced a new MiCA authorization. It has not done so since withdrawing its Greek application. Its June 24 update said another member state would be named. The company will disclose its next licensing route when ready.
What comes next for Binance MiCA licensing?
The exchange has kept its European plans open. However, it still lacks a MiCA license. Therefore, its next jurisdiction choice matters. Additionally, ESMA oversight remains active. As a result, Binance must resolve its licensing gap. Until then, its EU services may face limits.