Binance Withdraws Greece Application for EU Crypto License

Key Insights

• Binance MiCA plans took a hit in Greece.
• The exchange said it still sought European approval.
• Star Xu accused Binance of regulatory arbitrage.

Binance MiCA approval faced a new setback after the exchange withdrew its Greek license application. The move placed its European Union access at risk before the bloc’s July 2026 compliance deadline.

Binance said it would seek authorization in another European Union member state. The company did not name the country, leaving users and regulators focused on its next filing.

Binance Cites Uncertainty for Withdrawal; Reaffirms Commitment to Europe

According to the exchange, it withdrew the license application after careful consideration of its status and timeline. Binance applied for a MiCA license in Greece earlier this year and was counting on the license to operate in Europe once the MiCA transition period ends on July 1.

However, a Reuters report last week claimed that the Greek financial regulator will reject the application. While Binance noted at the time that its application met MiCA standards, it appears to have withdrawn it altogether.

Despite this, the exchange stated that it remains committed to the European market and plans to continue operating under MiCA. It plans to get the license through another country, stating, “We are confident we will secure a license in the coming months.”

However, the move now means Binance may have to temporarily shut down operations in the EU from July 1 to comply with MiCA. It is unclear how many users the exchange has in the 27-member bloc, but it stated it will communicate directly with impacted users and provide information on next steps.

EU Regulators Skeptical About Binance as OKX CEO Says Rival Exchange Playing Regulatory Arbitrage

Interestingly, getting a MiCA license might prove more challenging than Binance is willing to admit. The exchange is reportedly facing pushback from other regulators in the region.

According to Reuters, the company has also approached regulators in Ireland and Latvia, who also refused.  Concerns from EU regulators center on Binance’s compliance culture, with regulators citing past fines for money laundering and its complex structure.

The background of senior executives, including the influence of founder Changpeng Zhao, is also a sticky point. Zhao, who was jailed for four months in the US before a presidential pardon, remains a major beneficial owner.

Although the exchange claims it has invested heavily in compliance and internal control, and Zhao is no longer involved in its affairs, regulators remain skeptical.

Meanwhile, OKX founder Star Xu has described Binance’s recent move as a regulatory arbitrage game. The OKX CEO also referenced the UK, where Binance tried to acquire Eqonex Limited, a licensed exchange. Still, the UK Financial Conduct Authority warned that such an acquisition would not give Binance the authority to operate.

According to him, Binance lacks a culture of compliance, which is its core problem. Xu argued that hiring thousands of compliance staff would not fix this.

He noted that a compliance program where  “compliance teams lack authority, have limited visibility into key activities, are removed when raising sanctions, AML, or market integrity concerns,” is merely a paper exercise.

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