Binance co-CEO: Regulators invite exchanges to apply for new licenses after MiCA\'s setback

Binance Co-CEO: Regulators invite exchanges to apply for new licenses after suffering MiCA setbacks in Greece

Binance Co-CEO Richard Teng said that the exchange is holding \"preliminary\" discussions with regulators to explore applying for a crypto license after withdrawing Greece\'s MiCA application. He spoke at the Reuters NEXT Asia conference in Singapore on Thursday but did not mention the specific jurisdictions involved, adding that the dialogue was still in its early stages.

These remarks were made after Binyuan adjusted its regulatory strategy within the EU. MiCA--the EU\'s unified, coordinated crypto licensing system--has become fully applicable after the EU transition period ends on July 1. As a result, the European Securities and Markets Authority (ESMA) stated that crypto companies must provide services to EU customers through MiCA-authorized entities, with limited exceptions for cross-border business that is proactively sought.

Key Points

Teng said Binance was in early discussions with regulators on obtaining a crypto license, but did not disclose specific countries. Binan withdrew its MiCA license application in Greece on June 24, citing concerns that EU users would face shortening the transition period. Teng believes that EU users are increasingly transferring funds to self-custodial accounts rather than platforms authorized by MiCA, questioning MiCA\'s consumer protection effectiveness. Based on data citing growth in app downloads, competition among licensed exchanges intensified after the transition period ended. Binance said it continued to expand in Asia through partnerships, including in the Philippines, but noted that the regulatory environment there was divided among different agencies.

Binance seeks new license path after Greek withdrawal

Binance\'s setback in Greece follows reports that Greek regulators intend to reject its MiCA license application. As previously reported, Binance withdrew its MiCA application in Greece on June 24. Teng told Reuters NEXT Asia that the situation surprised companies, despite submitting applications that they thought were fully compliant. \"This surprised us because we submitted a fully compliant application. Regulators tell us the same,\"Teng said, adding that the company is\" not quite sure \"why the approval process continues to be delayed. He said Binance withdrew its application to avoid users being forced into an extremely short transition period.

In addition, after the end of the MiCA transition period, ESMA\'s guidance emphasized that services to the EU should be conducted through MiCA-authorized entities, with narrow exceptions to proactively sought cross-border activities. The framework aims to bring crypto companies into a unified EU rulebook, replacing individual regulatory systems across countries.

Teng: Self-trusteeship led capital outflows

At the meeting, Teng believed that the reality after the transition period in Europe did not develop as envisioned by MiCA\'s consumer protection goals. He pointed out user behavior after the MiCA requirements came into effect, saying that the vast majority of users who withdrew assets from Binance chose to self-custody. According to Teng,\"Among EU users, those who subsequently withdrew funds from our platform, 70% of their funds went to self-managed wallets. Only 30% went to entities supervised by MiCA-supervised.\" Teng said the result reduces the level of supervision available to consumers because self-managed wallets are not subject to the same licensing and operating restrictions as regulated exchange platforms.

Previous reports also mentioned that Binance recorded a net outflow of US$1.23 billion in the week starting June 29, an increase of 207% from approximately US$400 million in the previous week. The data came from DefiLlama. The key contradiction in the exchange\'s argument is obvious: even if MiCA tightens licensing standards for intermediaries, it may not reduce the number of users holding non-custodial assets. This is critical for investor protection, as wallet custody transfers risk from licensed premises to end users, including backup, access control, and safety and health risks.

MiCA transition period ends to reshape the competitive landscape of licensed exchanges

Another theme of Teng\'s speech was how quickly the competitive landscape changes once MiCA is enforceable. He referred to continuing market dynamics within the EU, while emphasizing that once major platforms change their regulatory stance, licensed exchanges will compete for the users and liquidity that comes with it. For example, OKX said its app downloads increased by 158% between June 24 and July 5, citing Sensor Tower data. While download metrics cannot directly translate into regulated transaction volume, they can indicate faster user inflows as compliance-driven changes affect how and where EU customers access services.

For traders and money allocators, this shift may affect execution quality and platform liquidity. But it also raises practical questions: whether users will be concentrated in fewer MiCA-authorized locations, and whether these locations can absorb order flow as quickly as users flow out of non-compliant channels.

Binance continues to expand in Asia in different regulatory environments

Outside Europe, Teng said Binance is working to expand its regulatory footprint in Asia. He listed deployments in multiple jurisdictions, including Japan , South Korea, Thailand , Indonesia , Australia, and announced that the Philippines is a recent new market. Binance has re-entered the Philippine market through a partnership with BlockShoals Technologies after regulators took steps to restrict access to the exchange in 2024. However, the partnership is in a regulatory split: Neither Binance nor BlockShoals is licensed by the Central Bank of the Philippines (Bangko Sentral ng Pilipinas) to process peso transfers or other central bank-regulated virtual asset services.

Previous reports included an interview with BlockShoals legal director Marie Antonette Quiogue, who said the arrangement allows Binance to provide crypto transactions because trading activities fall under the jurisdiction of the Philippine Securities and Exchange Commission. She said services supervised by the central bank require separate authorization. This distinction highlights a recurring challenge for global exchanges: When regulatory responsibilities are spread across different scopes of different regulators, a \"single license\" approach may not work well. This also means that compliance policies often need to be tailored to specific products-transactions, custody, transfers, or other regulated functions-rather than being treated as a single, unified license.

As Binance explores further license negotiations after Greece withdraws its application, investors and users will focus on the evolution of the EU situation: Can Binance obtain an authorization path for EU customers? Will more funds continue to flow to self-custody? Can MiCA-licensed competitors quickly translate user interest into continued mobility?