Binance: MiCA Success Should Be Measured by Licensed Firms, Not Exclusions

Binance withdrew its Markets in Crypto-Assets (MiCA) license application in Greece days before the July 1 deadline, forcing the exchange to halt some services and new registrations for European Union users. Gillian Lynch, Binance’s head of Europe and the U.K., said the regulation’s success should be measured by how many firms it brings into the regulated system, not by which ones it excludes. She said Binance remains committed to securing a new license and staying in the bloc.

A Deadline Withdrawal in Greece

Binance pulled its MiCA application in Greece last week after months of talks with regulators, notifying affected users fewer than 10 days before the deadline instead of the 30 days the company typically aims for internally. In an email to users across several EU countries, Binance said it would suspend some services and stop accepting new registrations until further notice.

Lynch said Binance expected authorization in early June after being told in April that its application was complete. Board meetings were then repeatedly postponed before the company decided to withdraw. Describing the state of the filing, she said:

“We were deemed to have a complete application. Nothing was missing, nothing material was outstanding.”

Lynch, who spent nearly two decades in traditional banking before moving into crypto, said Binance has invested more than $300 million a year in compliance and employs more than 1,500 compliance staff globally. Greece’s Hellenic Capital Market Commission did not immediately respond to a request for comment on the licensing process.

How Lynch Frames MiCA’s Success

Lynch said she still supports a MiCA structure in which national regulators grant licenses while the European Securities and Markets Authority (ESMA) takes on greater supervisory responsibility over the largest firms. Pressed on what the regulation’s rollout should be judged by, she said,

“Is the success of MiCA that we have regulation, or is the success that the players are regulated?”

She argued Europe’s crypto market loses more than just its largest exchange if Binance stays outside the MiCA framework, saying the company provides liquidity and infrastructure that benefit the wider ecosystem.

Disputed Reporting on ESMA’s Role

According to a report citing people familiar with the discussions, ESMA privately advised national regulators to reject Binance’s MiCA applications over concerns about the exchange’s compliance with financial-crime rules. Binance disputes that characterization.

Lynch said the reporting mischaracterized how certain accounts were identified, reviewed, and acted on, and said Binance offboarded and reported to law enforcement any accounts tied to the flagged activity as soon as the patterns were uncovered. 

She also rejected suggestions that Binance ignored sanctions concerns or retaliated against compliance staff, calling those allegations categorically false. Binance has separately sued the publication behind related reporting earlier this year on Iran-linked accounts.

What Comes Next for Binance in Europe

Lynch declined to speculate on whether political factors contributed to the delays, saying the company’s focus is now on helping users through the transition and preparing a new licensing strategy. She expects the next application to move faster given the work already completed in Greece. In a statement, she said: 

“We’re very committed to being in Europe and very committed to being regulated. We’re not leaving Europe. This is an obstacle in our way at the moment.”

The Broader MiCA Shakeout

Binance is not the only exchange affected by the July 1 deadline. Of the roughly 3,000 registered virtual asset service providers operating in the EU, almost 80% may not survive under MiCA, according to Erald Ghoos, chief executive of OKX Europe. Alex Fazel of SwissBorg said more than 10 million users will need to migrate to a MiCA-approved platform as a result of the wave of suspensions across the industry.