Exclusive-Binance set to lose permission to operate in EU, sources say

Binance, the world's largest crypto exchange, is on the verge of losing its permission to serve clients across the European Union, according to sources familiar with the matter. The company's license application is reportedly set to be rejected, which would prevent it from operating in the bloc starting next month.

New EU regulations, known as MiCA (Markets in Crypto-Assets), require crypto firms to obtain a license by the end of June to continue serving clients within the 27-nation bloc. Binance's application, submitted to Greece's market regulator, is expected to be turned down. This move by European regulators aims to bring greater oversight to the multi-trillion-dollar crypto industry, which has long been a concern for its potential to destabilize markets and harm investors.

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support an orderly process and minimise disruption to our users

If the Greek regulator rejects Binance's application, the exchange will not receive the necessary authorization to operate in the EU. This leaves the status of Binance's customers within the bloc uncertain. In response to the Reuters report, Binance posted on X, formerly Twitter, stating its intention to "support an orderly process and minimise disruption to our users," though further details were not provided.

A spokesperson for Binance, which boasts 300 million customers globally, previously indicated that the company has been actively pursuing a MiCA license and has collaborated with regulators for 18 months. Binance believes it has met the necessary requirements for authorization, and understood that Greece's Hellenic Capital Market Commission (HCMC) had deemed its application compliant. However, the HCMC declined to comment on Binance's application due to confidentiality rules.

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HCMC has given no formal indication of the contrary.