Key Takeaways:
- While failing to get a MiCA license in Greece, Binance states it will stay in Europe.
- Compliance history, corporate structure and governance were reportedly concerns for EU regulators.
- The exchange is also looking to get a different license before the MiCA’s deadline of June 30.
Binance is in a haste to find a new road to EU regulation after its bid in Greece for a MiCA license was stalled. The setback has sparked unease in millions of European users ahead of the EU’s new crypto regime nearing its deadline.
Binance Searches for a New EU License
Binance has yet to pull out of Europe even though it has been highlighted as a license failure, said Binance’s head of the European and UK operations, Gillian Lynch.
Greece might no longer be the source of choice for the exchange, and Binance is looking for other jurisdictions within the European Union, Lynch adds.
Previously the firm considered talks with regulators in multiple countries. Binance, however, reportedly made a single official application in Greece. The comments are released just before the transition of MiCA ends on June 30th.
Read More: Binance Teases “AI Pro” Tool, Hinting at Next-Gen Trading Power for Millions
MiCA Deadline Creates Pressure
The Markets in Crypto-Assets framework stipulates that crypto companies need to be authorised from one EU country to operate in the other countries of the European Union. Companies may have to either increase their prices or cut basic services for European customers without permission.
European regulators recently said that approvable firms should start winding down ghoulishly. Binance does not specify how many users it’s serving in Europe; one of the biggest cryptocurrency trading platforms in Europe, the exchange is still active.
Regulators Remain Concerned About Compliance History
A source involved in the discussions said the regulators looked at the past AML problems Binance has had, the company’s in-house controls, and its structure.
A few officials were reportedly asking questions about how governance works at the exchange and the ongoing power of founder Changpeng Zhao.
Binance has its own answers to those concerns. Lynch said that Zhao is no longer involved in company operations and that the exchange has definitely ramped up its compliance operations.
Since entering the fray in regulatory settlements, the company now has about 1,500 compliance employees on staff and has made significant investments in internal controls.
Europe Remains Important for Binance
Binance is still showing its interest in the European market, despite the difficulties of licensing.
The exchange has had numerous download spikes into the millions in France, Germany and Spain over the years. Trading of euro assets continues to be active throughout the website as well.
Binance’s difficulties illustrate how seriously European regulators are applying MiCA rules. National regulators now coordinate more closely, reducing the ability of crypto firms to shop for easier jurisdictions.
The outcome could become one of the first major tests of the EU’s new crypto framework. Whether Binance secures approval elsewhere may determine how aggressively regulators enforce MiCA rules against large global exchanges.
For now, Binance says user funds remain safe and that affected customers will receive direct communication if operational changes become necessary.
Read More: European Commission Targets Crypto Tax Gaps, Pressures 13 States Over MiCA Compliance
The post Binance Searches for A New EU License after Withdrawing from Greece appeared first on CryptoNinjas.
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