Binance Faces EU Setback as Greece MiCA Application Set To Be Turned Down

Crypto exchange Binance is set to lose its bid to continue offering its services to clients in the European Union (EU). This comes as Greece reportedly plans to reject the exchange’s application for a Markets in Crypto-Assets (MiCA) license.

Binance To Lose Application For MiCA License

According to a Reuters report, the crypto exchange could lose its permission to offer services to EU clients within weeks as Greece is about to turn down its application for a MiCA license, citing two people familiar with the matter. This presents a setback for the exchange, as under the new EU rules, crypto firms have until the end of this month to obtain a license that allows them to operate in the region.

Binance applied for the MiCA license in Greece in January this year, presenting the application to the Hellenic Capital Market Commission (HCMC). The exchange had reportedly established a local holding company in Athens, which may have also prompted the decision to apply for the license through Greece.

A Greek publication had also reported at the time that Greece was processing the application on an expedited basis. However, based on the Reuters report, the HCMC is likely to reject this application, meaning the exchange won’t be able to operate in the EU from the start of July.

The Binance coin price is down amid this development. The token is currently trading at around $606, down almost 2% today from an intraday high of $617, according to TradingView data.

Exchange’s Representative Comments On Greece Application

A Binance spokesperson told Reuters that they have worked constructively with regulators over the past 18 months, including through a comprehensive application process with Greece’s HCMC. The top crypto exchange believes that it has met the requirements for a MiCA license, according to the spokesperson.

The spokesperson also mentioned that the exchange is aware that the HCMC has completed its review of the application and that the regulator deemed it compliant with MiCA requirements. Amid the imminent decision from the Greek regulator, the exchange continues to record significant success.

Binance has captured a 60% share of the SpaceX perpetuals market. This comes as Elon Musk’s company continues to see massive demand since its IPO last week, and is now the fourth-largest by market cap, overtaking Microsoft and Amazon in the process. SpaceX boasts a market cap of almost $3 trillion.