Binance said some of its European clients could be affected after not managing to secure a license to operate across the bloc.
The company's ability to operate in Europe is in jeopardy after Greece's financial regulator rejected the exchange's application for a license under the European Union's Markets in Crypto-Assets (MiCA) framework.
The development prevents the company from obtaining the regulatory approval required to continue operating throughout the EU under the new regime.
The company said it will seek to get an authorization in another EU member state. In a statement to CNBC, Binance added that it will "take the necessary steps before 1 July to remain compliant with applicable requirements" and is confident it will secure a license "in the coming months."
Under MiCA rules, crypto firms must secure authorization from a national regulator in one EU member state, allowing them to "passport" their services across all 27 countries in the bloc. The framework was introduced as part of the European Union's effort to create a unified rulebook for the digital asset industry and strengthen investor protections.
Gillian Lynch, head of the company for Europe and the United Kingdom, told Reuters on Thursday that the company won't be leaving Europe.
Lynch told Reuters that the company "may just have a different pathway to being authorized." "If it is not Greece, I'm looking at other alternatives," she added. The company is reportedly holding talks with regulators in Ireland, Latvia and Greece, but they don't appear to be prospering, with officials there concerned about past penalties for money laundering and other aspects of its history.
MiCA was developed following years of regulatory debate over cryptocurrency oversight in Europe. The rules gained additional urgency after a series of market disruptions, including the collapse of major crypto businesses and growing concerns among policymakers about consumer protection, financial crime risks and the use of digital assets in sanctions evasion.
European authorities have also increased scrutiny of financial transactions linked to geopolitical conflicts, including Russia's war in Ukraine and efforts to enforce sanctions against individuals and entities targeted by Western governments. Regulators across Europe and the United States have repeatedly highlighted the importance of monitoring digital asset transactions as part of broader anti-money laundering and sanctions compliance efforts.
Binance has spent the past several years attempting to strengthen its regulatory standing in major markets following heightened scrutiny from authorities worldwide. The exchange has sought licenses in multiple jurisdictions and has repeatedly stated that compliance remains a central part of its strategy.
