The world’s largest cryptocurrency exchange is not giving up after an unsuccessful attempt to obtain a European license in Greece. According to its co-CEO Richard Teng, Binance is in talks with other regulators in the European Union who have invited it to submit a new application. Meanwhile, more than $1.2 billion has flowed out of the platform, with some of its European clients moving their cryptocurrencies to their own wallets.
Table of contents:
- Binance licenci MiCA v Řecku nezískala
- Co licence MiCA znamená pro kryptoměnové burzy
- Většina odchozích prostředků skončila ve vlastních peněženkách
- Z Binance odteklo 1,23 miliardy dolarů
- Konkurence s licencí MiCA získává nové uživatele
- Binance expanduje v Asii
- O návratu Binance do Evropy rozhodne nový regulátor
Cryptocurrency exchange Binance is seeking a new path to obtain a license under the European MiCA regulation and return to the European Union market in full capacity. Company co-CEO Richard Teng stated that the exchange is in talks with several regulators who have approached it with an offer to apply for permission in their jurisdiction.
Teng declined to say which countries are involved during the Reuters NEXT Asia conference in Singapore. According to him, the negotiations are still in too early a stage. However, he emphasized that Binance remains in close contact with European regulators and wants to continue operating in the EU.
You might be interested: Interview with Lucien Bourdon from Trezor
Binance Failed to Obtain MiCA License in Greece
Binance originally sought a crypto-asset service provider license in Greece. If it had obtained it, it could have offered services in other EU member states as well, thanks to the European passporting system.
However, the exchange withdrew its application on June 24, 2026. This happened just days before the end of the transitional period under the MiCA regulation and after information emerged that the Greek regulator was preparing to reject the application. Binance subsequently announced that it would try to obtain permission in another member state.
According to Teng, the company did not expect such an outcome. He claims that Binance submitted a fully compliant application and regulators had told them it met the requirements. The exchange’s management therefore allegedly did not understand why final approval kept being delayed.
Teng explained the withdrawal of the application as an effort to prevent a situation where European users would have only a very short time to transfer assets or switch to another provider. According to him, Binance preferred to choose a controlled limitation of services and began looking for another licensing route.
What the MiCA License Means for Cryptocurrency Exchanges
The Markets in Crypto-Assets regulation, known by the acronym MiCA, created uniform rules for trading crypto-assets throughout the European Union. The regulation covers, among other things, transparency, provision of information to customers, authorization of services, and supervision of companies that issue, store, or trade cryptocurrencies.
The transitional period, during which some companies could operate based on original national registrations, ended on July 1, 2026. From this date, services to European clients must be provided through an entity authorized under MiCA.
The only exception remains the limited reverse solicitation regime. This applies to cases where a European customer contacts a foreign provider entirely on their own initiative. Companies must not use this exception as a substitute for a license or actively offer their services in the EU through it.
The European Securities and Markets Authority (ESMA) also required unlicensed companies to prepare feasible plans for terminating or limiting activities. They were to enable clients to transfer cryptocurrencies to an authorized provider or to their own wallet.
Most Outgoing Funds Ended Up in Self-Custody Wallets
It is precisely the behavior of European customers that Binance is now using as an argument when criticizing the impact of regulation. Teng stated that of all the funds that users from the EU withdrew from the exchange, approximately 70 percent ended up in wallets managed by the users themselves. Only the remaining 30 percent was reportedly transferred to companies with a MiCA license.
A self-custody wallet means that the user themselves holds the private cryptographic keys needed to manage cryptocurrencies. They gain full control over their assets, but also assume responsibility for the secure storage of access credentials. Loss of a key or access phrase can mean irreversible loss of funds.
Based on these transfers, Teng questioned whether MiCA fulfills its goal of strengthening consumer protection in all cases. According to his argument, a large portion of money did not move to regulated exchanges, but to wallets over which financial authorities exercise substantially less oversight.
However, this is the view of Binance management. ESMA itself explicitly stated transfer to a self-custody wallet as one of the options that providers should offer clients when terminating unlicensed services. At the same time, the regulator warned investors that the protection arising from MiCA applies only when using a specific European company that has actually obtained the relevant license.
Read also: yPredict: Revolutionary Platform for Cryptocurrency Prediction
$1.23 Billion Flowed Out of Binance
Regulatory changes were also reflected in capital movement. Binance recorded a net outflow of funds amounting to $1.23 billion during the week beginning June 29.
According to data from the DefiLlama platform analyzed by Cointelegraph, the outflow increased by 207 percent compared to the previous week. In the preceding period, it reached approximately $400 million.
The figures show that the end of the MiCA transitional period did not only mean an administrative change for cryptocurrency companies. It also forced some European users to make quick decisions about whether to move their funds to competitors, withdraw them from the market, or transfer them to self-custody.
MiCA-licensed competitors gain new users
While Binance searches for a new licensing path, exchanges that have obtained European authorization are trying to capitalize on its weakening position. The OKX platform, for example, has seen significant growth in interest.
The company reported that downloads of its mobile app increased by 158 percent between June 24 and July 5. The figure is based on data from analytics firm Sensor Tower. The timing thus corresponds to the period between Binance’s announcement of withdrawing its Greek application and the first days after the complete end of MiCA’s transitional regime.
The new regulation has intensified competition for European users. The MiCA license has become a crucial competitive advantage, as it allows authorized exchanges to legally reach clients across the unified European market.
Binance expands in Asia
While its future in Europe remains uncertain, Binance continues to expand its regulatory presence in Asia and the Pacific. Teng mentioned the exchange’s activities in Japan, South Korea, Thailand, Indonesia, and Australia. He also stated that the company is preparing to enter several other markets.
One of the latest moves is a return to the Philippines through a partnership with local fintech company BlockShoals Technologies. It operates as an approved local partner in the StratBox regulatory sandbox, which is run by the Philippine Securities and Exchange Commission. Binance provides its technological and operational infrastructure to the project.
Binance is thus returning to the Philippine market after local authorities restricted access to its platform in 2024 due to missing authorization.
However, the regulatory situation remains complex. Neither Binance nor BlockShoals has a license from the Philippine central bank Bangko Sentral ng Pilipinas, which would allow them to independently process transfers in Philippine pesos or provide other services falling under the central bank’s supervision.
A new regulator will decide on Binance’s return to Europe
Binance is not abandoning the European market, but currently does not have a license that would allow it to provide a full range of services to clients throughout the EU. Further developments will depend on whether the exchange manages to submit a new application and convince one of the national regulators that it meets MiCA requirements.
Teng’s statement suggests that multiple jurisdictions are interested in accepting a new application. However, until Binance announces a specific country and obtains authorization, its European business remains limited. At the same time, it is becoming evident that the redistribution of the European cryptocurrency market has already begun—some clients have switched to licensed competitors, while an even larger share has chosen self-custody of cryptocurrencies.
You might also like: Bitcoin awaits the Fed
