Teng: Fragmented MiCA rollout could push crypto from Europe

Binance CEO Richard Teng warned that inconsistent national implementation of the EU’s Markets in Crypto-Assets regulation could move crypto firms, users and investment out of Europe after the transition period ended on July 1, 2026. From that date, platforms without full national approval may no longer legally serve customers in the bloc.

MiCA established a Europe-wide legal framework for crypto assets and aimed to harmonize rules for exchanges, institutions and digital-asset services. The regulation was the first major effort by a bloc to set common standards for digital assets and the single-market approach depends on consistent application across member states.

In an opinion piece dated July 6, Teng called MiCA “the world’s first comprehensive regulatory framework for crypto-assets” and warned that “if implementation becomes fragmented, unpredictable or inconsistent, Europe risks pushing users, companies, investment, jobs and tax revenue elsewhere.” He added that “frameworks are only as strong as their implementation” and that “leadership requires more than being first.”

Binance withdrew its MiCA application with the Hellenic Capital Market Commission after months of engagement produced no formal decision before the July 1 deadline. The exchange said it will continue to seek authorization through proper channels and intends to pursue a compliant long-term path in the region.

Regulatory consistency affects activity beyond spot trading, including settlement, payments, programmable products and digital ownership. Predictable rules and clear authorization processes shape where firms choose to invest, hire and build services. Divergent national approaches may fragment liquidity, limit cross-border competition and reduce user choice across member states.

Observers are focusing on how national authorities process license applications, the speed and transparency of decisions, and whether member states align on supervisory standards. Firms that fail to obtain approval face operational disruption or exit, while those that secure authorization will test whether national approvals allow regulated platforms to serve customers across the bloc.

MiCA was designed to increase legal certainty for customers and create a level playing field for operators. Licensing outcomes and the timing and uniformity of national decisions will provide the next concrete signals about how the regulation functions in practice.