Binance has not secured a MiCA license in the EU, putting its European operations under pressure

Binance has failed to obtain authorization under the EU’s new MiCA (Markets in Crypto-Assets) regime, and the transition clock is now the real story: if the exchange does not secure approval before 30 June, it may have to wind down activity across the bloc. For PSPs and banks, this is a useful read on how MiCA is being enforced in practice, not just in theory.

1. Binance applied for a license in Greece, but approval never came through. Jillian Lynch, Binance’s head for Europe and the UK, said the company does not know the exact reason for the rejection and is now looking at alternative jurisdictions. “Binance is not leaving Europe. If it’s not Greece, we will consider other options for obtaining authorization,” she said.
2. Reuters also reports that Binance had talks with regulators in Ireland and Latvia, but met a cautious response there as well. That matters because MiCA gives firms a path to the EU “passport” model only after authorization in one member state; without that first license, cross-border operations are the problem, not the solution.
3. European regulators are looking at Binance’s prior AML (anti-money laundering) issues, its complex international corporate structure, and its risk management approach. Zhao’s role remains part of the file too: Binance says he is fully removed from management, while Zhao previously said he remains the exchange’s ultimate beneficial owner.
4. In 2023, Zhao pleaded guilty to violations of US AML rules as part of a $4.3 billion settlement with US authorities. US regulators said Binance had breached AML and sanctions-control requirements and failed to report more than 100,000 suspicious transactions. Binance says it has since strengthened compliance, including hiring about 1,500 compliance specialists.
5. The European Securities and Markets Authority (ESMA) said crypto firms that have not received a MiCA license by the end of the transition period must “immediately start orderly wind-down” activities in the European Union. Binance does not disclose its EU client count, but the company says it has more than 300 million users globally, and Sensor Tower estimates its app was downloaded more than 4 million times last year in EU countries, led by France, Germany and Spain.

For high-risk payment providers, the point is not whether Binance can keep serving Europe in some form. The point is that MiCA is now creating an operational test case: the regulator’s tolerance for firms with a history of AML scrutiny, complex ownership structures, and cross-border scale is being measured in real time.