REGULATION | Binance Was Reportedly Cut Off from The European Union Due to a ‘History of Financial-Crime Violations’

Binance has suspended most crypto services for users across the European Union after failing to secure authorization under the bloc’s Markets in Crypto-Assets (MiCA) framework, marking one of the biggest disruptions for the world’s largest cryptocurrency exchange in a major regulated market.

The move follows the expiration of the EU’s MiCA transition period on July 1, after which crypto firms must hold a license from an EU member state to provide services across the bloc.

According to the Wall Street Journal, the European Securities and Markets Authority privately advised national regulators against approving Binance’s application because of concerns over the exchange’s history of financial-crime compliance, including its 2023 U.S. anti-money laundering settlement.

Binance ultimately withdrew its license application in Greece after months of discussions with regulators, forcing it to halt trading services for affected EU users while allowing withdrawals and certain asset transfers.

Binance rejected the characterization of the licensing process, saying the report misrepresented its compliance efforts.

Binance Head in Europe, Gillian Lynch, said the company’s Greek application had been deemed complete and that Binance had expected approval before repeated regulatory delays led it to withdraw the filing.

“The success of MiCA should ultimately be judged by who it licenses, not who it excludes,” Lynch said.

“As the person who led the license application, there’s nothing that I have been made aware of that there was any issue with the application.

In fact, I was told the complete opposite.”

She said the exchange spends more than $300 million annually on compliance and employs over 1,500 compliance professionals globally. The exchange also spent months working with Greece’s Hellenic Capital Market Commission (HCMC) on its MiCA application.

Lynch added that Binance remains committed to the European market and is exploring alternative licensing pathways.

Binance has previously faced compliance issues across various jurisdictions – from money laundering allegations in Niger to enabling access to complex products without consumer safeguards in Australia.

As of this writing, Binance is facing a tax evasion case in Nigeria running into billions of dollars.

The latest setback leaves Binance without a MiCA passport at a time when rivals including Coinbase and OKX have secured EU licenses, underscoring how the bloc’s new crypto regime is reshaping competition among global exchanges.

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