Binance, the world’s biggest cryptocurrency exchange, has formally applied for a pan-European license known as MiCA (Markets in Crypto-Assets) that digital asset firms operating in the continent must obtain before July 1. The European Union introduced the MiCA regime in 2023 as a way to standardize the regulatory and compliance regime for crypto companies, while also streamlining the process for those firms to set up shop across different EU jurisdictions.
Despite earlier speculation that Binance would seek its license in Malta or Latvia, the exchange opted to file in Greece, where it has also set up a holding company. The Binance application was first reported by the country’s English-language news site D News. The site reported that the process is on a fast-track under the Hellenic Capital Market Commission (HCMC), and that the regulator has asked major accounting firms, including Ernst & Young and KPMG, to help it review the proposal.
A Binance spokesperson confirmed in a statement that the company had sought a MiCA license in Athens, and that it was in active discussions with the HCMC. They added that Binance views the MiCA regime as offering regulatory clarity and a clear framework for innovation.
Greece is perhaps a surprising choice for the application given that Athens is not known as a major financial center, and its regulators are not known as overtly crypto-friendly as is the case with Malta. If the application is approved, it would likely result in Binance creating a significant footprint in the country in the form of a major corporate office and a sizable number of staff.
“Greece is an important contributor to the EU’s economic framework, with an economy growing above the EU average and a strong regulatory environment that promotes financial stability, transparency, and investor protection,” said the Binance spokesperson.
The HCMC did not reply to a request to comment on the application or its timeline. According to D News, Binance’s Greek holding company “has been incorporated for an indefinite duration, suggesting a long-term strategic presence rather than a temporary arrangement.”
Key deadline looms
When the European Union introduced MiCA, many crypto observers hailed it as a first-of-its kind regime that effectively combined consumer protection and regulatory clarity. At the time MiCA went into force in 2023, EU member countries gave firms with existing crypto operations until the end of June to obtain a license. Firms that fail to obtain one in time could be forced to shut down operations in various countries.
This deadline puts pressure on Binance, which currently operates in at least six European countries through licenses issued by various national regulators. The company has offices in several European countries, including France, where it has had a tangled relationship with authorities over compliance policies. In October, Binance, which in 2022 agreed to settle a major criminal probe in the United States, confirmed that it has been subject to onsite inspections by JUNALOC, the Paris division of the French Public Prosecutor’s Office.
In recent months, a handful of countries led by France have expressed unease over the MiCA regime, which lets firms with a license “passport” into every EU country, and pushed to hand crypto regulation over to a central authority, the European Securities and Markets Authority (ESMA). Crypto industry lawyers and others, however, have warned it would be disruptive to upend the MiCA regime at this stage. It’s unclear for now if the ESMA proposal has meaningful traction.
Barring a major change to the MiCA regime, Binance is likely well-positioned to receive a license from the Greek regulators. According to a person familiar with the process, companies typically engage with regulators for months before applying for a MiCA license, and only do so when they have a reasonable confidence it will be approved. When a license is granted, crypto companies can operate and engage in marketing across the EU, though they are still subject to certain national laws, including those related to consumer protection.
