Binance is set to have its regulatory licence in Europe denied in what would become the latest, and possibly worst, blow to the company
Binance could be on the verge of losing its European customer base as its regulatory licence in the region is reportedly set to be denied.
The world’s largest cryptocurrency exchange, with more than 300 million global customers, has applied to Greece’s Hellenic Capital Market Commission (HCMC) for an operating licence under the Markets in Crypto Assets (MiCA) regulatory framework.
However, a report from Reuters on 16 June revealed the application is expected to be turned down.
A Binance statement following the report stated the company “remains fully committed” to obtaining a MiCA licence and is continuing to work closely with regulators.
“Binance remains fully committed to securing our MiCA license and operating under a unified European framework,” said a company statement via X.
Binance first filed an application for a MiCA licence with HCMC 18 months ago. The crypto exchange chose Greece as its MiCA hub due to the country’s labour and security, which had an advantage over more mature crypto regulatory markets, such as Malta, which was also under consideration by Binance.
According to a Binance spokesperson via an email sent to Reuters, HCMC has completed its review of Binance’s application and was compliant with MiCA guidelines. It has also been sent and reviewed by the European Securities and Markets Authority (ESMA).
The European Union (EU) brought ESMA on board in October 2025 to oversee the MiCA licensing process of all 27 EU bloc nations. This was done to provide a standard and holistic approach, ensuring a fair single capital market for Europe, particularly after an ESMA review suggested countries like Malta and Luxembourg had licensing processes that were too lenient.
Europe’s changing crypto regulatory landscape
The transitional deadline for Binance to obtain an operating licence is set for 30 June, 2026, with a hard deadline for applications to be fully completed and for companies to be authorised by 1 July.
If crypto and digital asset companies are operating in Europe without an authorised MiCA licence, they are considered to be operating illegally and could face fines, website closures, and criminal charges.
Under ESMA’s oversight, licence approvals have slowed down since MiCA came into effect in June 2023.
Before 2026, there were 3,000 crypto and digital asset firms with authorised licences. By mid-2026, there had only been 194 MiCA licence approvals.
This can be attributed to EU bloc regulatory authorities conducting more stringent anti-money laundering, consumer protection, and capital requirement checks on crypto firms seeking licences.
These more thorough reviews are also expected to become centralised and standardised for all 27 EU countries by July 2027 in accordance with ESMA’s review from 2024.
A huge blow for Binance?
If Binance were unable to obtain a MiCA licence, this would mean the world’s largest cryptocurrency exchange would be unable to offer its services to all 27 EU member states.
Some of its competitors, including Coinbase, Crypto.com, Kraken and OKX, have all secured MiCA licenses. Binance is also blocked from operating in the UK due to its non-compliance with the country’s crypto marketing and promotion rules.
The company has undergone significant changes in recent years, and has been marred by a record $4.3bn regulatory fine in the US, which followed its former CEO, Changpeng Zhao, serving a four month prison sentence after admitting to anti-money laundering failures in 2023.
Binance has also been accused of facilitating terrorist financing with its accounts allegedly used by terror groups in Iran. A US federal court has dismissed a lawsuit accusing Binance of providing material support to terrorist organisations in March 2026.
Richard Teng, CEO of Binance and Zhao’s successor, has promised a new compliant-first, regulatory approach for the company. But not being able to operate in Europe, to a market with hundreds of millions of customers, could become the company’s latest blow.
