Binance has withdrawn its application in Greece for authorisation under the European Union’s digital asset rules known as MiCA (Markets in Crypto-Assets) and will restart the licensing process in another member state. With the end of the MiCA transition period approaching, attention is focused on where it will choose as a new European base.

On June 24, blockchain media outlet The Defiant reported that Binance said it will halt the authorisation process it was pursuing in Greece ahead of the July 1 end of the MiCA transition period and will seek a new licence in another EU member state.

Binance officially confirmed the withdrawal of its Greece application on X, formerly Twitter. It said it would disclose the country where it will seek authorisation once preparations are complete.

Gillian Lynch, Binance’s head of Europe and the UK, told Reuters in an interview, "Binance is not leaving Europe," adding, "We will pursue MiCA authorisation in another EU jurisdiction."

The decision effectively nullifies the application Binance submitted in January to Greece’s Hellenic Capital Market Commission (HCMC).

Until just a few days ago, the tone was different. Binance said on June 16 that the HCMC had reviewed the filing and judged that it met the requirements, and that the process had then moved to an additional review stage by the European Securities and Markets Authority (ESMA). It ultimately decided not to continue the same process and instead to seek authorisation again in a new member state.

The company said it will continue taking steps to meet the necessary regulatory requirements before the July 1 end of the MiCA transition period.

Some users may also face possible impacts on service use. Binance said in an official blog post that customer assets are being safely protected and can be accessed at any time. It said some users may see service changes depending on country-specific circumstances and account status, and that it will provide follow-up procedures and available options to those customers individually.

EU regulation ahead of MiCA’s implementation is also tightening further. ESMA on June 23 announced supervisory standards for crypto service providers that have not received MiCA authorisation. Once the transition period ends on July 1, unauthorised operators must immediately stop acquiring new EU customers and marketing activities, and can provide existing customers only the minimum services needed for asset sales and transfers and position closures. ESMA also warned that if unauthorised operators continue cross-border operations, regulators in each country may jointly move to enforcement.

The delay in authorisation also intersects with competitive dynamics among European crypto exchanges. About 83 percent of crypto service providers operating in the EU have not yet secured MiCA authorisation. By contrast, Bitvavo, Kraken and Coinbase have already secured licences, and Ripple recently obtained a preliminary CASP licence from Luxembourg’s financial regulator, the CSSF, covering 30 countries in the European Economic Area (EEA).

Market impact is also appearing in euro trading. CryptoQuant analyst Martun assessed that Binance’s euro spot trading volume accounts for about 1 percent of total global spot trading, with daily trading typically at $100 million to $250 million. On high-volume days it can approach $600 million. Its share of the euro spot market is about 18.5 percent, the second-highest after Kraken’s 43.3 percent.

Binance previously stressed that it "provides services to more users in Europe than any crypto exchange" and warned that delays in the MiCA authorisation process could lead to reduced liquidity, weaker competitiveness, and outflows of investment and jobs. This is expected to make it a key variable in its European business strategy which EU member state Binance chooses as a new licensing base before July 1.