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Greece set to reject Binance's MiCA license application, threatening EU exit by July

Greece set to reject Binance’s MiCA license application, threatening EU exit by July

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Binance’s plan to serve customers in the European Union legally may be in jeopardy, as two people who are familiar with the matter told Reuters that Greece’s capital markets regulator is preparing to deny the world’s largest crypto exchange application for a Markets in Crypto-Assets (MiCA) license.

The exchange has since put out a measured response about its plan to “minimize disruption and keep users informed” as it approaches the June 30 MiCA deadline when unregistered crypto exchanges will be cut off from markets operating under the EU regulatory framework. 

Binance clarified that “We will provide a further update before 30 June 2026.” 

What does this rejection mean for Binance and the bloc?

MiCA requires every crypto-asset service provider operating in the EU to hold a valid license by July 1, 2026. 

Binance filed its application with Greece’s Hellenic Capital Market Commission (HCMC) in January, choosing Athens over established financial hubs like Frankfurt or Amsterdam. 

If the approval fails to come through, Binance would have no pathway to continued operations anywhere in the 27-member bloc, at least for now.

The HCMC has not made any comment regarding the application, citing confidentiality rules.

A Binance spokesperson reportedly stated that the company had worked constructively with regulators over the past 18 months and believed it had satisfied MiCA requirements. “HCMC has given no formal indication of the contrary,” the spokesperson said.

Why did Binance pick Greece as the hub for its European operations?

Co-CEO Richard Teng explained the rationale behind them settling for Greece at the Global Finance & Technology Network forum in Tokyo in February. 

“The license is pretty standard throughout Europe, so we have to think through many other factors, whether it’s social, whether it’s talent pool, safety and security issues,” Teng said at the time, as reported by Cryptopolitan. “Greece is where we think will be a good base for us to expand in Europe.”

However, the bet on Greece came with a risk because at the time of Binance’s application, Greece had not approved a single MiCA license. Germany, by contrast, had granted more than 45, and the Netherlands had issued 22, according to European Securities and Markets Authority data.

Binance set up a local holding company, Binary Greece, to anchor its European operations around the same time it submitted the application.

Is regulatory pressure building across the EU?

The Greek rejection would not be an isolated regulatory headache for Binance. France’s Autorité des Marchés Financiers had previously identified Binance among over 90 firms operating in the country without proper MiCA authorization.

More than 50 crypto companies now hold MiCA licenses across the EU, according to Cryptopolitan. Competitors, including Kraken, KuCoin, Coinbase, and OKX, have already secured their approvals and can operate across the European Economic Area.

Binance currently holds registrations in at least six European countries through various national regulators, Cryptopolitan reported in January. But those legacy permits expire once MiCA’s hard deadline passes.

If the HCMC formally rejects the application, Binance would need to either appeal the decision or apply through a regulator in another EU member state, with less than two weeks before the July 1 cutoff. 

Teng acknowledged the timeline risk back in February, telling reporters he would “leave it to the EU to determine” whether Binance secures its license before the deadline.

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Greece moves to tax crypto gains at 15% with legislation expected within months

Greece moves to tax crypto gains at 15% with legislation expected within months

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Greece’s Finance Ministry is drafting a bill that would impose a 15% capital gains tax on cryptocurrency profits.

The information was reportedly shared with Reuters by some government officials. If the bill is passed, it would bring digital assets into the country’s formal tax code for the first time.

It is expected to reach parliament in the coming months.

A tax-free threshold and carve-outs for individual miners

The planned regime includes a 500-euro ($580) exemption on gains, meaning residents would owe nothing on their first profits up to that amount, according to one of the officials.

Individual cryptocurrency miners would also be exempt from the new levy; however, that exemption was not extended to corporations engaged in mining.

Both officials acknowledged a practical challenge, which is that estimating the size of Greece’s crypto market is difficult. This is because most Greek investors trade through platforms based outside the country. 

No specific revenue projection for the new tax has been published.

Where Greece fits in Europe’s crypto tax patchwork

EU member states each set their own rules on taxing digital assets, and the rates vary across the states. 

Cyprus charges 8% on crypto capital gains at the low end, while France applies rates as high as 30%. Greece’s proposed 15% would bring it close to the middle of that range.

This proposed bill is also coming at a time when Athens is working to bring its own crypto regulatory framework up to the EU’s set standards. 

Last August, the Hellenic Capital Market Commission (HCMC) overhauled its licensing regime for exchanges and wallet providers to align with the EU’s Markets in Crypto-Assets (MiCA) regulation, as Cryptopolitan reported at the time. 

The rules require that platforms must clear a formal licensing process that can take up to 40 working days, and unlicensed providers are barred from offering services in the country.

How does Binance’s bet on Athens come into the picture?

Greece’s regulatory push carries extra weight because Binance, the world’s largest crypto exchange by volume, chose the country as its EU base earlier this year. 

Binance co-CEO Richard Teng cited Greece’s talent pool and security environment when explaining the decision at the Global Finance & Technology Network forum in Tokyo, according to Reuters and Greek broadcaster ERT. 

The company applied for a MiCA license through the HCMC in January, and Greek regulators signaled they would fast-track the review, Cryptopolitan reported in February.

The tax legislation would add another layer to an environment Athens is building to attract crypto business while ensuring oversight. 

Prime Minister Kyriakos Mitsotakis made his intentions to regulate the “dubious” crypto market known as early as January 2025. He reportedly told cabinet members the government aimed to “bring order to a largely ambiguous and unregulated domain.”

Passive income taxed differently

The Waltio tax guide for Greece outlines the current Greek framework, pointing out that gains from staking, mining, and airdrops fall under the progressive income tax scale rather than the flat 15% rate.

That scale runs from 9% on the first 10,000 euros of income to 44% on amounts above 40,000 euros. Crypto-to-crypto swaps also count as taxable events, with the gain calculated at the moment of the exchange.

Capital losses can be carried forward for five years to offset future gains, and the filing deadline for crypto-related income is June 30 of the year following the tax period, according to Waltio’s summary of the legislation.

The proposal is not final 

The bill still needs to clear parliament, and final details could shift before submission. Investors trading through foreign platforms face an open question about enforcement, given that Greek authorities have acknowledged limited visibility into offshore activity. 

The July 2026 MiCA licensing deadline for crypto firms across the EU will add further pressure on Athens to have its tax and regulatory framework fully in place.

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