Binance, the world’s largest cryptocurrency exchange, is on the brink of losing access to the European Union after its application for a Markets in Crypto-Assets (MiCA) license in Greece faces rejection, according to Reuters reporting on the matter.

The decision, if confirmed, would prevent Binance from offering services across the 27-member bloc when the MiCA transition period ends on July 1. Under the new regulatory framework, crypto firms must secure approval from a national regulator to gain passporting rights across the EU.

Binance submitted its application through a Greek entity earlier this year, positioning the country as its regulatory base in Europe. The exchange pointed to Greece’s workforce and operating environment as factors behind the choice. Co-CEO Richard Teng had expressed confidence that the firm would meet the requirements ahead of the deadline.

Two sources told Reuters that Greece’s Hellenic Capital Market Commission is set to reject the application. The regulator declined to comment, citing confidentiality rules. Binance said it has received no formal notice of a denial and maintains that its submission meets MiCA standards.

The firm said they believe it complies with the framework and has not been told otherwise by the Greek authority.

Despite that stance, the timeline leaves little room for delay. Without a license in place by the end of June, Binance would need to halt services to EU clients or risk enforcement action from national regulators. That could include fines or restrictions that limit access across key markets such as France, Germany, and Italy.

After the report came out, Binance sought to reassure users on X over its regulatory status in Europe. In a series of posts, the exchange said it remains committed to the region and is working to minimize disruption while it navigates the approval process.

“Binance remains committed to its European users and will continue to operate in compliance with applicable law,” the exchange posted.

EU, MiCA, Binance, and crypto protections

The EU has emerged as a major test case for global crypto regulation. MiCA introduces a single rulebook for digital asset firms, covering areas such as consumer protection, capital requirements, and governance. The regime is designed to replace a patchwork of national rules with a unified system.

Binance has faced regulatory pressure in several jurisdictions over the past few years, including the United States and the United Kingdom. The outcome in Europe could shape its global strategy as it seeks to align operations with stricter oversight.

Rivals that have secured MiCA licenses, including Coinbase and Kraken, stand to benefit if Binance exits the region. A shift in market share could follow as users migrate to platforms that can offer uninterrupted access under the new regime.

The potential loss of the EU market also raises questions about liquidity and product availability on Binance’s platform. Europe represents a large base of retail and institutional users, and any disruption could affect trading volumes and token flows.