Binance to lose license to serve customers in the European Union
Kyiv • UNN
Binance's MiCA license application will be rejected, causing the exchange to lose access to the EU market. The company promises to minimize inconvenience for its users.
Binance, the world's largest cryptocurrency exchange, will lose its authorization to serve European Union customers starting next month as its license application is set to be rejected. This was reported by Reuters, citing sources, according to UNN.
Details
Under new EU rules known as MiCA, cryptocurrency firms have until the end of June to obtain a license that will allow them to continue serving customers across the bloc. Binance's application, submitted to the Greek market regulator, will be rejected,
European regulators are attempting to rein in cryptocurrency exchanges that allow people to trade cryptocurrencies, such as Bitcoin, worldwide.
Under MiCA, crypto companies must apply for licenses from regulators in individual EU countries, which they can then use as a "passport" to operate across the 27-nation bloc.
At stake is the oversight of the multi-trillion dollar crypto industry, which regulators have long warned could destabilize markets and harm investors if not properly controlled.
Greece's refusal would mean that Binance will not receive the green light to operate in the EU, leaving the fate of Binance's customers based in the bloc uncertain.
Binance stated on the X social network its intention to "maintain an orderly process and minimize disruption for our users," without providing further details.
A Binance spokesperson previously stated that the company is seeking a MiCA license and has been working with regulators for 18 months.
He noted that the company has met the requirements for obtaining MiCA authorization. The company understands that the Hellenic Capital Market Commission has completed its review of the application and it has been found to be compliant.
As a reminder
The world's two largest cryptocurrency players are preparing to obtain licenses to operate across the European Union under the new MiCA regulation, even despite a deepening rift among national regulators regarding the speed and quality of approving such permits.