Binance has withdrawn its application for a crypto-asset services license in Greece after failing to overcome regulatory concerns raised during the approval process, according to people familiar with the matter.
The withdrawal came before a scheduled meeting of Greece’s capital markets regulator on Wednesday, meaning no formal decision was taken on the application. Binance submitted a written request to withdraw its filing on Tuesday afternoon, the people said.
The move marks the latest regulatory setback for the world's largest cryptocurrency exchange as it seeks to expand its footprint under the European Union's Markets in Crypto-Assets (MiCA) framework, which establishes a unified licensing regime for crypto firms operating across the bloc.
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According to sources with knowledge of the review, Binance's application encountered significant issues related to supervisory compliance and corporate governance that could not be fully resolved during the assessment process. Efforts were made to address the regulator's concerns, but the application ultimately failed to meet the required standards, the sources said.
Earlier this year, Greece's capital markets regulator enlisted Ernst & Young to provide technical and advisory support in reviewing the application, reflecting the complexity and significance of assessing a global crypto operator under the new MiCA regime. While EY reportedly worked to help resolve a number of outstanding issues identified during the review, those efforts did not result in a successful outcome. The six-month assignment was valued at €30,000.
The developments also appear to contradict claims made by Binance regarding the status of its application. The company had maintained that the Greek regulator had completed its review and concluded that the application complied with MiCA requirements. Binance further claimed that the matter had been examined at the level of the European Securities and Markets Authority (ESMA), and that Greek authorities had indicated they viewed the application as compatible with the regulatory framework and were preparing to grant approval at a future board meeting.
People familiar with the process dispute that characterization, saying no such approval had been reached.
Binance's regulatory challenges in Greece predate the MiCA application. According to the same sources, the company had previously received a negative assessment from the Bank of Greece in connection with an earlier attempt to obtain a payment institution license. Among the issues cited was the ownership structure of Binance Europe, the company's Greek entity, whose sole shareholder was listed as Dubai-based Binary Finance (Europe) Holdings Limited.
The withdrawal leaves Binance without a Greek MiCA license at a time when crypto firms across Europe are racing to secure regulatory approvals that would allow them to operate throughout the European Union under a single framework.
