Two sources told Reuters on Tuesday that regulators in Greece plan to reject Binance's MiCA license application, putting the world's largest crypto exchange at risk of losing access to EU customers before July 1.

MiCA Deadline Is July 1 And Binance Has No Approved License

The EU's Markets in Crypto-Assets framework requires all crypto firms to hold a valid license to serve European customers.

The transition grace period expires July 1, after which any exchange operating without authorization breaches EU law.

The European Securities and Markets Authority warned in April that non-compliant firms must wind down EU operations or migrate customers before that date.

Binance applied through Greece's Hellenic Capital Market Commission over the past 18 months and believed it had met all MiCA requirements. The HCMC declined to comment, citing confidentiality rules.

However, sources familiar with the matter told Reuters that regulators plan to deny the application, forcing Binance to find an alternative path within roughly two weeks or exit the EU market.

A Binance spokesperson pushed back, saying the company worked constructively with regulators throughout the process and that regulators never formally indicated they would reject the application.

CEO Richard Teng had previously cited Greece's regulatory environment as the preferred home for Binance's European operations.

Binance Already Paid $4.3 Billion To US Regulators After AML Failures

The rejection risk arrives as Binance continues rebuilding its regulatory reputation globally. The exchange paid a $4.3 billion settlement to US authorities in 2023 following anti-money laundering compliance failures.

Former CEO Changpeng Zhao received a four-month prison sentence before being pardoned by President Trump.

Current CEO Richard Teng has made regulatory licensing a core part of the company's strategy since taking over.

What EU Users Should Do Right Now

If the rejection is confirmed, Binance would need to halt EU services from the start of July.

EU-based users holding funds on Binance face potential disruption to withdrawals, trading, and account access if the platform cannot secure an alternative licensing arrangement before the deadline.

Binance has not confirmed any contingency plan or alternative licensing route. EU users with funds on the platform face a two-week window to monitor developments closely.

Without a license, continued operation in the EU would constitute a direct breach of MiCA regulations with no legal pathway to continue.