Binance withdraws Greek MiCA application, criticizes EU regulation

Key facts

• Binance withdrew its MiCA license application in Greece due to delays and regulatory uncertainty.
• The exchange will suspend some services and stop new registrations for EU users by July 1.
• Binance's European head, Gillian Lynch, stated MiCA's success should be measured by how many firms are regulated, not excluded.
• The Wall Street Journal reported that ESMA advised national regulators to disapprove Binance's MiCA applications over financial-crime compliance issues.
• Binance disputes the WSJ's reporting, stating it offboarded and reported suspicious accounts to law enforcement.

Binance has withdrawn its Markets in Crypto-Assets (MiCA) license application in Greece, citing delays and regulatory uncertainty, which will force the exchange to halt some services and new registrations for EU users just days before the July 1 deadline. Gillian Lynch, Binance's Head of Europe, stated that the success of MiCA should be judged by how many firms are brought into the regulated system, rather than by the existence of a rulebook itself.

Lynch argued that excluding major players like Binance from MiCA would negatively impact Europe's crypto market by reducing liquidity and infrastructure. She defended Binance's financial-crime controls, refuting allegations from recent Wall Street Journal reporting that she claimed mischaracterized how accounts were identified and handled. Binance previously sued The Wall Street Journal over similar reporting concerning Iran-linked accounts.

Despite the setback in Greece, Binance remains committed to securing a new license and operating within Europe. Lynch indicated that the company has invested heavily in compliance, employing over 1,500 staff globally and spending more than $300 million annually on these efforts. She expressed confidence that Binance's next licensing application would be swift, as much of the regulatory groundwork was completed during the Greek process. The exchange's immediate priority is assisting affected users through the transition period before focusing on its renewed licensing strategy.