CoinDesk
Binance's bid to serve European Union customers under the bloc's new Markets in Crypto Assets (MiCA) regime is heading for rejection by the Hellenic Capital Market Commission, according to a Reuters report citing two people familiar with the matter. The decision would land days before the end-of-month deadline by which crypto firms must hold a MiCA licence to operate across the EU.
Binance, the world's largest crypto exchange, pushed back hard. A spokesman told CoinDesk that the HCMC completed its review and deemed the application compliant with MiCA requirements, that ESMA had reviewed it at the EU level, and that the HCMC had informed ESMA it intended to authorise the licence at an upcoming board meeting. The HCMC did not respond to a request for comment.
Why it matters
Binance set up a Greek holding company to anchor its MiCA application, after speculation that it might pivot to Malta — where it had prior offices. A Greek rejection would leave the exchange scrambling to either re-file under a different national authority in days, restructure its European servicing through partner venues, or face service restrictions for EU users as the 30 June MiCA cliff approaches. The dispute also crystallises the credibility gap between a major exchange's public compliance claims and the on-the-record position of the regulator reviewing its file.
Market impact
The risk extends well beyond Binance itself. Combined spot exchange volumes already slipped 3.45% to $4.41T in May — the lowest since September 2024 — and an EU service interruption at the largest venue would tighten liquidity exactly as MiCA's compliance costs reshape the competitive map. RWA perpetual futures volumes bucked the trend, rising 10.4% to a new all-time high, suggesting the structural bid is migrating to compliant venues rather than drying up. For Binance's EU user base, the next 72 hours will determine whether they keep direct access or get migrated to a partner platform before the deadline.
Frequently asked questions
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What is MiCA and why does the 30 June deadline matter?
MiCA is the EU's comprehensive crypto regulation requiring crypto-asset service providers to hold authorisation from a national competent authority by 30 June 2024. Without an approved licence, venues cannot legally serve EU customers in the bloc.
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Why is Binance's MiCA application based in Greece?
Binance set up a Greek holding company to anchor its MiCA bid after speculation that it might pivot to Malta, where it had prior offices. The HCMC became its lead regulator for the EU-wide application.
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What happens if Greece rejects Binance's application?
A rejection would leave Binance days to re-file under a different national authority, restructure EU servicing through a partner venue, or face service restrictions for European users as the 30 June MiCA cliff hits.
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What is the dispute between Binance and the HCMC?
Binance says the HCMC completed its review, deemed the application MiCA-compliant, and told ESMA it intended to authorise at an upcoming board meeting. Reuters, citing two people familiar, reports the HCMC is preparing to reject the application. The HCMC declined to comment.
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How would a rejection affect the broader crypto market?
Combined spot exchange volumes already fell 3.45% to $4.41T in May, the lowest since September 2024. A service interruption at the world's largest venue would tighten EU liquidity just as MiCA's compliance costs reshape competition, though RWA perpetual volumes rose 10.4% to an ATH on compliant venues.
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