Binance faces EU setback as Greece set to reject MiCA bid

Binance, the world's largest cryptocurrency exchange, is facing a major regulatory challenge in Europe.

Its application for a license under the European Union's new crypto framework is reportedly set to be rejected, potentially preventing the company from continuing to serve clients across the bloc after June.

Two sources familiar with the matter told Reuters that Greece's Hellenic Capital Market Commission (HCMC) is expected to reject Binance's application for authorization under the EU's Markets in Crypto-Assets (MiCA) regulations.

The decision would leave Binance without the approval required to operate across the 27-member European Union once the transitional period expires on July 1, 2026.

The development comes as crypto firms race to comply with MiCA, a landmark regulatory framework designed to establish a unified set of rules for digital asset companies operating within the EU.

Binance's MiCA application faces uncertainty

Under MiCA, crypto firms must obtain authorization from a national regulator within the EU to receive passporting rights, allowing them to provide services throughout the bloc.

Binance submitted its application through Greece's market regulator in January 2026.

The company had previously identified Greece as a preferred regulatory base in Europe, citing the country's workforce and security advantages.

However, the application is now expected to be turned down, reported Reuters.

A representative for the Hellenic Capital Market Commission declined to comment on Binance's application, citing confidentiality requirements.

Without a MiCA license, Binance would not qualify to continue operating in the EU from the beginning of July.

Unlicensed platforms could face enforcement measures, fines, or restrictions from national regulators if they continue offering services.

Binance maintains confidence in compliance efforts

Binance disputed suggestions that its application had failed to meet regulatory standards.

A company spokesperson told Reuters that Binance has been pursuing a MiCA license and has worked closely with regulators throughout the process.

The spokesperson said the exchange has worked with regulators over the past 18 months and believes it has satisfied the requirements needed for authorization.

Binance also said it understood that HCMC had completed its review and that the application was considered compliant with MiCA requirements.

"HCMC has given no formal indication of the contrary," the spokesperson told Reuters.

Earlier this year, Binance co-Chief Executive Officer Richard Teng highlighted Greece's advantages as a regulatory hub.

Teng said in February that Greece's labour force and security profile gave it an advantage over larger European financial centers.

At the time, he said the ultimate licensing decision would rest with European regulators.

Impact on Binance and the European crypto market

The potential rejection represents a significant setback for Binance in one of the world's largest regulated crypto markets.

Europe remains an important region for digital asset trading, and MiCA has become a key framework for companies seeking long-term access to the market.

The uncertainty surrounding Binance's application could benefit competitors that have already secured MiCA authorization.

Exchanges such as Coinbase and Kraken may be positioned to attract users seeking fully compliant trading platforms within the European Union.

Market participants are also monitoring the potential impact on Binance's native BNB token and the broader cryptocurrency market, with some analysts suggesting the news could contribute to short-term volatility.