- The regulatory bottleneck
- A strong compliance record
Global cryptocurrency exchange Binance has announced it will provide an update on its European regulatory status by the end of June.
The company’s Markets in Crypto-Assets (MiCA) license application is currently facing imminent rejection. The exchange could lose its ability to legally serve European Union clients starting in July.
The regulatory bottleneck
Binance spent the last 18 months pursuing a license through Greece’s Hellenic Capital Market Commission (HCMC). According to an official blog post released on Tuesday, Binance entered the process in “good faith.”
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Binance stated that its understanding was that the HCMC had completed its review and considered the exchange compliant with MiCA requirements.
However, the application was subsequently elevated to the European Securities and Markets Authority (ESMA) for further review.
Binance maintains that it is ready to operate under a “genuinely harmonized European framework,” but a recent Reuters article says that the application is expected to be rejected.
A strong compliance record
Binance pointed to its recent success in securing a comprehensive suite of licenses under the Abu Dhabi Global Market (ADGM) framework to show its compliance.
The exchange has strengthened its infrastructure, which has prevented nearly $7 billion in potential fraud losses.
Binance has stated that “minimize disruption and deliver the best possible experience for our users.”
With the July deadline looming, all eyes are now on Binance’s promised follow-up announcement, expected before the end of the month, which will detail the company’s next steps and available options for its millions of European users.