Binance invited to apply for licenses after MiCA pullback

Regulators invited Binance to apply for crypto licenses after the company withdrew its Markets in Crypto-Assets Regulation application in Greece, co-CEO Richard Teng told a conference in Singapore. He said the discussions are at an early stage and did not identify the jurisdictions.

Binance withdrew the Greek filing on June 24 after reports that Greek authorities planned to reject the application and as approval timelines slipped. The MiCA transition period ended on July 1. Under the rules, crypto firms generally must serve EU clients through a MiCA-authorized entity, with limited exceptions for unsolicited cross-border business.

Teng said the company had submitted what it considered a fully compliant application and was surprised by the pace of approval. ‘It caught us by surprise because we submitted a fully compliant application,’ he said, and the filing was withdrawn to avoid forcing users into a short transition window.

He reported that among users who moved assets off Binance after the MiCA transition, about 70% transferred funds to self-hosted wallets and about 30% moved to MiCA-regulated platforms. Teng noted self-custody arrangements generally fall under less regulatory oversight than licensed exchanges.

Market data showed a spike in withdrawals in the final week of June, with net outflows of roughly $1.23 billion in the week beginning June 29, up about 207% from the prior week. The same period saw increased activity at some rival exchanges and higher app downloads for certain competitors.

Outside Europe, Binance is expanding its regulatory footprint in Asia, establishing or strengthening operations in Japan, South Korea, Thailand, Indonesia and Australia. The firm reentered the Philippine market through a partnership with BlockShoals Technologies after regulators had restricted access earlier in 2024.

BlockShoals’ head of legal said the Philippine arrangement allows Binance to offer crypto trading under the country’s securities regulator, while services regulated by the central bank, such as peso transfers, require separate authorization. Neither Binance nor BlockShoals currently holds central bank licenses to handle peso transfers.

Teng described the regulatory talks as preliminary and said Binance is assessing where to apply for licenses so it can continue serving customers in line with local rules.