Binance says a key step in its EU Markets in Crypto Assets (MiCA) licensing process has moved forward, even as Reuters reported that regulators are preparing to reject the exchange’s bid—an outcome that could limit Binance’s ability to serve customers in the bloc.

In a Tuesday blog update, Binance stated that Greece’s Hellenic Capital Market Commission (HCMC)—a MiCA regulator involved in reviewing the company’s application—has completed its assessment and “considered it compliant with MiCA requirements,” while noting that the matter still requires review by the European Securities and Markets Authority (ESMA).

Key takeaways

Binance claims HCMC has completed its MiCA application review and found its submission compliant, subject to ESMA oversight.
Reuters reported EU regulators may reject Binance’s licensing request, potentially preventing the exchange from offering services to EU residents.
MiCA authorization timing remains critical: EU firms must obtain approval by the end of June to continue serving residents lawfully.
Binance says delays could affect liquidity, competition, and user choice, and may shift activity outside the EU.

Binance points to progress with HCMC review

Binance’s response comes shortly after Reuters reported that EU regulators were preparing to reject the exchange’s licensing bid. Binance’s blog post did not directly address the Reuters claim in detail, but it framed the latest stage of the process as constructive.

According to the company, HCMC has finished reviewing its application and concluded that it meets MiCA requirements, with remaining steps moving to ESMA. Binance characterized any disruption in the timeline as having consequences beyond its own operations, arguing that it could reduce liquidity and competition while narrowing user choice.

Binance also said it plans to update users by June 30, aligning with the MiCA application deadline referenced in its communication.

What MiCA timing means for Binance in the EU

Under the MiCA framework, crypto businesses that want to operate legally for EU residents need to secure authorization by the end of June. The reporting in the source indicates that if Binance’s application—submitted to and reviewed through HCMC—were ultimately rejected, it would likely be unable to legally continue offering services in the European Union starting July 1.

The practical significance for users and market participants is straightforward: authorization or lack of it can determine whether an exchange can provide services to EU-based customers without regulatory risk. That makes the ESMA review stage pivotal, particularly given the approaching end-of-June cut-off.

Binance previously applied for MiCA licensing in Greece under HCMC in January, and the source notes that other regulators—such as those in Germany and the Netherlands—have already approved some MiCA-compliant licenses, underscoring how time-sensitive the current stage is for remaining applicants.

Why the HCMC-to-ESMA handoff is a flashpoint

MiCA oversight is split across national authorities and EU-level review. In this case, Binance highlights that the Greek regulator has completed its portion and assessed compliance, while Reuters suggests EU-level decisions could still go the other way.

That gap—between a national regulator’s compliance assessment and the eventual outcome after ESMA review—matters to investors, traders, and counterparties because it affects expectations around service continuity, custody arrangements, and liquidity flows. Market participants often plan around regulatory certainty, and a process that appears to be “moving” on one layer but is rumored to be heading toward rejection at another can raise uncertainty about near-term access to a major venue.

Binance’s blog message reflects that concern, arguing that any delays or distortion in its MiCA path could have broader consequences for the EU crypto market, including liquidity and competitive dynamics.

Binance faces additional compliance scrutiny in the US

While the immediate focus is MiCA authorization in Europe, the exchange’s regulatory posture is also shaped by its ongoing history with US authorities. In 2023, Binance reached an agreement with US regulators in which then-CEO Changpeng Zhao stepped down and pleaded guilty to a felony charge. The company also agreed to a $4.3 billion settlement with the US Treasury Department and Department of Justice and to operate under a monitoring program.

More recently, US lawmakers have pressed for answers regarding Binance’s compliance amid war-related geopolitical developments and reporting that the exchange facilitated $1 billion to sanctioned entities. The source indicates that this issue has continued to draw attention from US lawmakers.

For market participants, this parallel regulatory track is relevant because it can influence reputational risk assessments and compliance expectations globally, even when the immediate decision is specific to EU authorization.

With ESMA review and the end-of-June MiCA deadline approaching, the key question for users and the broader market is whether Binance’s authorization path ultimately aligns with Binance’s claim of HCMC compliance—or whether Reuters’ report of a possible rejection proves accurate; the June 30 update and the timing of ESMA’s next steps will be the most important signals to watch.