Binance, one of the world's largest crypto exchanges, has formally pulled its Markets in Crypto Assets (MiCA) license application in Greece. The company said on Wednesday that it wants to stay aligned with the European Union's crypto rules, and will now look to secure authorization in a different member state instead.
The timing is striking. The announcement landed just a week after signals emerged that Greece's financial regulator, the HCMC, was preparing to reject the application.
What Binance actually said
In its Wednesday statement, the exchange was direct.
Binance has decided to withdraw its MiCA licence application with the Hellenic Capital Market Commission (HCMC) in Greece and pursue authorization in another EU Member State.
The firm added that over many months it had worked with the HCMC constructively and in good faith. Because no response arrived ahead of the July 1 deadline, it said it was now moving forward in a way that served its users.
Binance also noted that, in the meantime, it would take the necessary steps before July 1 to remain compliant with applicable requirements. That means some users may be impacted, and the company said it would reach out to affected users directly with clear information on what comes next.
The pressure of the July 1 deadline
Firms that want to offer crypto services compliantly across the European Union must hold a MiCA license by the July 1 deadline. Without one, they may be forced to halt operations in the region.
Binance's near-term path in Europe remains uncertain. Even so, the exchange reassured users on Wednesday that their funds are safe and secure, while acknowledging that the withdrawal could affect some of them.
The company said,
We are in the process of contacting all of our EU users. Those communications will explain whether any action is required, what options may be available, any relevant timelines, [and] where to go for support.
Why Greece in the first place
Binance had filed its application in Greece back in January. Part of the reason for picking the country was its recent economic growth.
Despite the setback of withdrawing the application, the firm insists it is in Europe for the long haul.
While we withdrew our application in Greece, Binance remains committed to Europe,the exchange said. It added that Europe is an important region for the company, and that its ambition to operate under a clear, fair, and harmonized MiCA framework remains unchanged.
How passporting works
Once a firm is approved in one EU nation, it can passport, or transfer, its compliance to the other 27 member states. Last year, however, French regulators pushed back on passporting, warning they could block firms that secured approval in EU countries with looser rules.
