CZ Claims Politics Killed Binance EU License Bid

In Brief

• CZ says Binance's Greek MiCA application was fully compliant and close to approval.
• He claims political forces intervened, leading Binance to withdraw its application.
• Binance is apparently seeking a MiCA license elsewhere before the EU's July 1 deadline.

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Binance founder Changpeng “CZ” Zhao claims that the exchange’s MiCA license application in Greece was fully compliant and would’ve been approved were it not for unnamed political players.

CZ was recently a guest on The Starting Block, where he stated that Binance nearly got its approval to launch in Greece before the withdrawal last week. However, he claimed, certain forces were against this approval.

“There were two countries in the EU that wanted the Binance application,” he said. “Because of that, there was actually a bit of a back and forth and a fight over it. A bidding war of some kind. But unfortunately, there were other forces that were against it.”

Binance is racing against time

There was speculation online that it was the ECB President Christine Lagarde who was somehow involved in blocking Binance’s application, though this hasn’t been verified. CZ himself did not confirm or deny it either, only saying that he had heard the rumors but hadn’t seen anything concrete related to them.

Binance withdrew its Markets in Crypto-Assets (MiCA) application in Greece on June 24, following reports that it was likely to be rejected. Nonetheless, the exchange said it would look to gain approval in another EU member state. However, unlicensed firms must stop their EU operations on July 1.

“I think overall the current situation, sadly, is a loss for Binance; it’s also a loss for Europe,” CZ commented. “It’s a lose-lose situation.”

A strategic move?

For any company, it’s generally better to withdraw than be formally rejected, though it’s unclear if this is what Binance is going for. Either way, it may be looking to try its chances in a country where it has stronger established relationships and overall better chances at success. This is especially relevant as companies that do secure MiCA licenses also secure notable advantages.

The MiCA regulation came into full effect in 2024 as a comprehensive legal framework for crypto-assets across the EU, requiring all crypto-asset service providers to get a license in one member state at the very least, which allows them to offer services across the Union.

Binance has secured relevant registrations and licenses in several EU countries, but this is no longer enough. MiCA is a different beast altogether, functioning on a higher standard of compliance.

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