Binance said in a statement released last week that it has successfully passed the review by the Hellenic Capital Market Commission (HCMC) and has met the requirements of MiCA before submitting for review by broader European regulatory authorities; it is still in contact with European regulators. Binance also warned that if any issues arise in the licensing process, the impact would extend beyond Binance’s own business: reduced competition could lead to lower liquidity in the EU.
Binance’s Public Statement on the Progress of Its MiCA Application
In its Tuesday statement, Binance described its self-reported progress in the MiCA process as follows: Binance believes it has passed the review by HCMC, and that its application meets MiCA requirements; the application was then submitted to broader European regulatory authorities for review, and it is still ongoing. Binance said it continues to stay in contact with regional regulators, positions Europe as “a key component of its long-term strategy,” and again reiterated its support for a common supervisory framework within the EU.
Binance said regulatory clarity is crucial to help users understand the situation more clearly, make it easier for companies to participate, and promote innovation.
Binance’s Compliance Investment: Hiring More Than 1,500 Compliance Personnel in the Past Two Years
According to Binance’s statement, in the latter half of the past two years, Binance has hired more than 1,500 compliance personnel and strengthened internal monitoring to comply with global regulations. Binance also did not directly comment on individual reports that may have been rejected, but instead focused on its compliance efforts and its integrity toward the MiCA process.
Binance’s Warning on the Potential Market Impact of Missing a License
In its statement, Binance explicitly warned that if the licensing process encounters problems, the potential market impacts could include: reduced competition leading to lower liquidity; a narrower range of service providers available to users; and crypto-asset activity, investment, and talent potentially leaving the EU market. Binance emphasized that Europe has a large number of crypto users, and the outcome of its license review is of major significance to local market participants.
Frequently Asked Questions
Does Binance’s claim that it has passed the HCMC review mean that its MiCA license has been approved?
No. Binance’s claim is that its application has passed the HCMC review and meets MiCA requirements, after which the application was submitted to broader European regulatory authorities for review; the final authorization decision has not yet been published. Previously, Reuters cited insiders as saying that HCMC is expected to reject Binance’s application before June 30, but Binance denied that claim.
If Binance does not receive MiCA authorization before June 30, what will European users face?
Under MiCA rules, crypto-asset firms that are not authorized will be unable to legally provide services to EU clients starting July 1. Binance said it will “continue to notify users, and may share more information and follow-up options ahead of the end-of-June deadline,” but no specific plan has been released yet.
Does Binance’s hiring of 1,500 compliance personnel have a direct impact on its MiCA application?
According to Binance, this is part of its actions to demonstrate its commitment to compliance, but hiring compliance personnel does not equate to MiCA authorization. The final MiCA authorization decision will ultimately be made by HCMC and broader European regulatory authorities based on the application content and regulatory assessment.
