Binance Urges MiCA to Be Measured by Approvals, Not Exclusions

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Gillian Lynch, Binance’s head of Europe, said the exchange met Greece’s licensing criteria and remains committed to the EU, despite withdrawing its MiCA application just days before the July 1 deadline.

She argued that the effectiveness of the European Union’s Markets in Crypto-Assets (MiCA) framework should be judged by how many firms it successfully brings under regulation—not simply by the existence of a rulebook.

Binance withdrew its application in Greece after months of discussions with regulators, forcing it to notify users with less than 10 days’ notice—short of its usual 30-day window. The exchange informed customers across several EU countries that certain services would be suspended and new registrations paused until further notice.

While maintaining that MiCA has the potential to become a global regulatory benchmark, Lynch said its success ultimately depends on participation. “Is success about having rules, or ensuring that market players are actually regulated?” she said.

She also backed MiCA’s structure, where national regulators grant licenses while the European Securities and Markets Authority (ESMA) oversees larger firms. Binance is among several exchanges adjusting services ahead of the July 1 transition.

A Wall Street Journal report claimed ESMA privately urged regulators to reject Binance’s application over compliance concerns tied to financial crime controls. Lynch rejected the characterization, saying the report misrepresented how Binance handled flagged accounts. She said the exchange promptly offboarded and reported such accounts to law enforcement, adding that key context was missing.

Lynch also dismissed allegations that Binance ignored sanctions risks or retaliated against compliance staff, calling them “categorically false.” The company has previously taken legal action against the WSJ over similar reporting.

Industry estimates suggest MiCA could significantly reshape the market. OKX Europe CEO Erald Ghoos said up to 80% of the EU’s roughly 3,000 registered crypto service providers may not survive under the new regime. Swissborg’s Alex Fazel added that more than 10 million users may need to migrate to MiCA-compliant platforms.

Regarding Greece, Lynch said Binance had completed most of the licensing process and expected approval in early June after being told in April that its application was complete. However, repeated delays in board decisions led the firm to withdraw.

“We were told the application was complete, with nothing outstanding,” she said.

Lynch highlighted Binance’s compliance efforts, noting the company spends over $300 million annually and employs more than 1,500 compliance staff globally. She said Binance worked closely with Greece’s Hellenic Capital Market Commission throughout the process.

She warned that excluding Binance from MiCA would impact Europe’s broader crypto ecosystem, given the exchange’s role in providing liquidity and infrastructure. Regulation, she said, should strengthen the market rather than sideline firms investing heavily in compliance.

While declining to comment on speculation around political influence, Lynch said Binance is focused on supporting users through the transition and preparing a new licensing strategy.

“We are fully committed to Europe and to being regulated,” she said.

Despite recent challenges, Lynch described MiCA as a positive step that brings clarity and stronger consumer protections, marking the industry’s continued maturation.

“The industry is here to stay and is becoming part of mainstream finance,” she said.

For now, Binance’s priority is guiding users through the transition while planning its return.

“We’re not leaving Europe,” Lynch said. “This is a temporary setback. We believe we will meet the requirements and re-enter the market.”

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