Binance could lose permission to serve European Union (EU) clients from July as its application for a licence under the EU’s Markets in Crypto-Assets (MiCA) framework is on the verge of rejection, Reuters reported.
Under MiCA, crypto firms must secure authorisation in an EU member state by the end of June to continue servicing customers across the bloc. A licence granted in one country can be used as a “passport” to operate across the EU’s 27 member states.
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Binance submitted its application through Greece’s Hellenic Capital Market Commission (HCMC). The regulator is expected to turn down the filing,the news agency reported, citing two people familiar with the matter.
The reported development comes as European authorities step up oversight of crypto exchanges, which allow customers to trade digital assets including bitcoin.
If the Greek application is rejected, Binance would not receive the authorisation needed to operate across the EU under MiCA. That could affect how the exchange continues to serve EU-based customers when current permissions expire.
In a blog post, Binance said the HCMC had completed its review and “considered it compliant” with MiCA requirements.
The crypto exchange said: “We entered the process of pursuing a MiCA licence in Europe in good faith, submitted a comprehensive application, and worked constructively with the HCMC, the official regulator in Greece, over many months.
“Our understanding is that the HCMC completed its review of the application and considered it compliant with MiCA requirements. Our understanding is also that the application was subject to review at European Securities and Markets Authority (ESMA) level.”
Binance added that it remains “committed” to its European users and will continue to operate in compliance with applicable law.
It will provide a further update before 30 June, and additional information as it becomes available.
The HCMC declined to comment to Reuters queries, citing confidentiality rules.
In February, Binance co-CEO Richard Teng said that Greece’s labour force and security profile supported the choice of the country as a potential regulatory base in Europe.
Last year, Binance introduced Medá, an authorised electronic payment funds institution in Mexico.
