From July, Binance, the world’s largest cryptocurrency exchange platform, may no longer be able to offer its services to customers in the European Union. According to the Reuters agency, in fact, the company – founded in 2017 by the Chinese-Canadian entrepreneur Changpeng Zhao – will see its license application rejected by the Greek supervisory authority.
THE SITUATION WITH THE EUROPEAN MiCA
The European regulation on crypto-assets (also known as MiCA, from Markets in Crypto-Assets), effective from the end of 2024, aims to provide greater consumer protections and safeguard the financial stability of the Union. Among other things, the regulation requires cryptocurrency companies to hold an operating license by the end of June: they must have it approved by the market regulatory authority of a member country of the Union, and it will be valid for all the other twenty-six members of the bloc.
Therefore, if in the case of Binance, Greece – more precisely the Hellenic Capital Market Commission – does not actually approve the license application, the platform will no longer be usable by customers in the European Union starting from July.
WHY DID BINANCE CHOOSE GREECE?
Last February, Binance’s CEO, Richard Teng, said the company had chosen Greece, rather than larger financial centers, as its regulatory base for Europe due to its workforce and security profile.
THE FOUNDER’S MONEY LAUNDERING CONVICTION
Richard Teng’s predecessor, Changpeng Zhao, was convicted in the United States for money laundering in 2024, but last year he received a pardon from President Donald Trump. Investigations revealed that Binance was used by terrorist groups, such as Hamas, and to carry out transactions to sanctioned countries, such as Iran and Russia.
BINANCE’S POSITION
A Binance spokesperson told Reuters that the company has worked with regulators for a year and a half to obtain the license, and believes it meets the MiCA compliance requirements.
BINANCE’S FIGURES
Binance has three hundred million users worldwide. In 2024 its revenues amounted to 16.8 billion dollars, 40 percent more year-on-year, while the annual trading volume on the platform fell to 3,400 billion compared to the peak of 9,500 billion in 2021.
