Binance set to lose EU licence bid, permission to offer services in the bloc, sources say

FRANKFURT: Binance, the world’s largest crypto exchange, is set to lose permission to offer services to European Union clients within weeks as its application for a licence is about to be turned down, two people familiar with the matter told Reuters.

Under new EU rules, called MiCA, crypto companies have until the end of June to obtain a licence to allow them to continue operating across the bloc. Binance’s application, which was made to Greece’s market regulator, is set to be rejected, the people said.

A representative for the Hellenic Capital Market Commission declined to comment on Binance’s licence application, citing confidentiality rules. Without a licence, Binance would not qualify to continue operating in the EU from the start of July.

A Binance spokesperson said it has been pursuing a MiCA licence and has worked constructively with regulators over the past 18 months, including through a comprehensive application process with Greece’s HCMC.

Binance believes it has met the relevant requirements to be MiCA authorised, the spokesperson said, adding that it understood that HCMC had completed its review of the application and it was considered compliant with MiCA requirements.

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

Binance co-CEO Richard Teng said in February that Greece’s labour force and security profile gave it the edge over larger financial centres for its regulatory home in Europe.

Teng, a former regulator in Singapore and Abu Dhabi, said at the time he would leave it to the EU to determine if Binance gets its licence by the July deadline.