The Binance cryptocurrency platform intends to remain in the European Union and will file a new application for a license, as he told Reuters senior executive of the company, following the failure of the previous application under the new regulatory regime, resulting in the risk of access to millions of users.
«Binance does not leave Europe», told Reuters Gillian Lynch, head for Europe and the United Kingdom after failure the company's attempt to secure a license in Greece for the provision of services such as crypto trading in the EU. «We may simply take a different route to obtain permission», report. «If it's not Greece, I'm looking at other alternatives».
These statements bring Binance to a possible collision track with European regulators. The company has only one week to obtain a license before its current licence in Europe expires, which would force it to phase out its activities in the EU.
Two persons who have knowledge of the process told Reuters that Binance has held talks with regulators in Ireland, Latvia and Greece, but faced reactions in all three countries. As they said, responsible officials expressed concerns about the earlier sanctions the company has accepted for money laundering cases, its complex international structure, and high risk culture.
The regulatory authorities of the three countries refused to comment or did not respond to a request for commentary, Reuters adds.
Contacts with a number of regulatory authorities highlight the difficulties faced by one of the world's largest crypto-currency companies to overcome regulatory resistance and obtain a license in the EU.
Lynch stated that Binance does not know why its approval was rejected and that in the past she believed that the Greek regulatory authority was planning to grant it a license.
She also stated that Binance had contacted four or five regulatory authorities, but had submitted only one formal application in Greece. A spokesman for the company added that Binance has not been in contact with the Central Bank of Ireland for several years.
Asked about Binance's earlier problems, Lynch reported that the company has invested in compliance and internal controls, employs around 1,500 staff in the area of compliance with canons and has no outstanding issues related to its application for authorisation.
Regulatory matters
Binance's failure to obtain EU leave before the 30 June deadline creates uncertainty about its future in the Union. Whether the authorities will now be able to impose something that would amount to a ban will be a test of the effectiveness of the new European rules on cryptocurrencies.
On Tuesday, the European Securities and Markets Authority (ESMA) reported that crypto-free crypto-currency companies should be able to «take immediate measures to effectively end their activities in the EU».
The EU's flagship regulatory framework for cryptocurrency, known as MiCA, came into force last year, giving companies a deadline until the end of June to obtain a licence in a Member State, so that they can serve customers across the 27-country block.
Binance claims to have over 300 million customers worldwide, but refused to reveal how many are in the EU. Its implementation recorded over 4 million downloads on the block last year, with most in France, Germany and Spain, according to Sensor Tower estimates.
Regulatory authorities examining Binance's application also expressed concerns about the company's background of senior executives and its history in money laundering control, which they considered inadequate, according to anonymous sources that spoke to Reuters.
One of the sources stood on the influence of founder Changpeng Zhao, who had stated on podcast in February that he is still the final real owner, and also stressed Binance's highly complex global structure.
Lynch told Reuters that Zhao has «100% removed» From the company.
Binance had previously faced difficulties in obtaining regulatory approval in other countries. She does not have a license in the UK, and was asked to leave Japan, after operating there without a permit. Its main license is now in the United Arab Emirates.
In 2023, Zhao – known as CZ – confessed to his guilt for violating American legislation against money laundering, as part of a $4.3 billion settlement, following a long-term investigation. He served nearly four months in prison before being pardoned last year by US President Donald Trump.
The US authorities reported that Binance had violated anti-money laundering and sanctions legislation and that it had not reported more than 100,000 suspicious transactions associated with groups designated by Washington as terrorist organizations.
Coordination of regulatory authorities
According to MiCA, cryptocurrency companies may apply through a single national regulatory authority and use it as «Passport» for the sale of services throughout the EU.
The regulatory authorities of Latvia, Ireland and Greece worked closely to ensure a consistent approach to Binance's request, one of Reuters's sources said.
Some regulatory authorities have expressed concerns that unequal application of the rules could undermine the efforts to supervise a multi-billion dollar sector, which, as they warn, could destabilise markets, facilitate illegal financing and harm investors, if not properly supervised.
Binance believes she meets MiCA's requirements, as company's general advisor Eleanor Hughes said last week. While national regulatory authorities grant licences, applications can be discussed through ESMA.
Source: skai.gr
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