Binance Pushes Back on MiCA Criticism, Highlights Licensing Over Exclusion

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Gillian Lynch, head of Europe at Binance, said the exchange had satisfied Greece’s licensing requirements and remains committed to operating in the EU, even after withdrawing its MiCA application shortly before the July 1 deadline.

She emphasized that the success of the European Union’s Markets in Crypto-Assets (MiCA) framework should be judged by how effectively it brings companies into the regulated ecosystem, rather than simply by the existence of rules.

Binance, the world’s largest crypto exchange, pulled its MiCA license application in Greece following months of engagement with regulators. The decision required the firm to notify users less than 10 days before the July 1 cutoff, instead of the typical 30-day notice period. In communications sent to users across several EU countries, Binance said it would suspend certain services and halt new account registrations until further notice.

Despite the setback, Lynch said Binance still views MiCA as a potential global benchmark for crypto regulation. However, she stressed that its real success lies in how many firms it successfully regulates. “Is success having rules in place, or ensuring that market participants are actually regulated?” she said.

Lynch also voiced support for MiCA’s structure, where national regulators issue licenses while the European Securities and Markets Authority (ESMA) plays a broader supervisory role over major firms. Binance is among several exchanges adjusting or suspending services ahead of the July 1 transition.

According to a Wall Street Journal report, ESMA privately encouraged national regulators to reject Binance’s MiCA applications, citing concerns about the exchange’s compliance with financial crime regulations. Lynch pushed back on the report, saying it misrepresented how the company identified and handled suspicious accounts. She said Binance promptly offboarded and reported the accounts to law enforcement once the activity was detected, adding that key details were omitted from the coverage.

She also dismissed claims that Binance ignored sanctions risks or retaliated against compliance staff, calling such allegations entirely unfounded. The exchange has previously taken legal action against the Wall Street Journal over related reporting.

Industry participants expect significant consolidation under MiCA. OKX Europe CEO Erald Ghoos estimates that nearly 80% of the EU’s roughly 3,000 registered virtual asset service providers may not survive under the new framework. Swissborg executive Alex Fazel added that more than 10 million users could be forced to migrate to MiCA-compliant platforms as services are suspended.

Addressing the situation in Greece, Lynch said Binance had largely completed the regulatory process and initially expected approval in early June after being informed in April that its application was complete. However, repeated delays in board decisions ultimately led the company to withdraw.

“We were told the application was complete, with no outstanding issues,” she said.

Drawing on nearly two decades of experience in traditional finance, Lynch said she understands regulatory expectations and highlighted Binance’s significant compliance investments—over $300 million annually and more than 1,500 compliance staff globally. She noted that the company worked closely with Greece’s Hellenic Capital Market Commission throughout the application process.

Lynch argued that excluding Binance from the MiCA framework would have broader implications for Europe’s crypto market, given the exchange’s role in providing liquidity and infrastructure. She said regulation should aim to strengthen the ecosystem rather than sideline firms that have invested heavily in compliance.

While declining to comment on speculation about political factors behind the delays, Lynch said Binance is now focused on supporting users during the transition and preparing a new licensing strategy.

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

Despite the challenges, Lynch described MiCA as a positive development that brings greater clarity and consumer protection to the industry. She said regulation is a sign of crypto’s maturation and its integration into the broader financial system.

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

For now, Binance’s priority is assisting customers through the transition period before reapplying for licenses.

“We’re not exiting Europe,” Lynch said. “This is a temporary hurdle. We believe we can meet regulatory requirements and return to the market.”