Binance Withdraws Greek MiCA Bid, Shady Reason Behind The Move Revealed

• Binance has withdrawn its MiCA bid in Greece, and is now fast-tracking its CASP application in another EU member state.
• Crypto Banter’s Ran Neuner claimed that Greece’s HCMC rejected Binance’s application under ECB pressure.

Binance has been under pressure as the hard deadline for the enforcement of Markets in Crypto Assets (MiCA) regulation drew near. On Wednesday, the world’s largest crypto exchange by trading volume decided to withdraw its application for crypto asset service provider (CASP) from Greece’s Hellenic Capital Market Commission (HCMC).

Ran Neuner, founder and CEO of Crypto Banter and Onchain Capital, revealed the shady reason behind its sudden move away from Greek regulators.

Binance’s MiCA Application Withdrawal From Greece

Reuters, citing “two people familiar with the matter,” earlier reported Binance’s trouble in getting authorization from the Greek regulator. Now, the company has officially recognized the issue and announced its withdrawal from the MiCA licensing bid in the jurisdiction.

However, Binance stated that it hadn’t given up on its operations across the European Economic Area (EEA). It clarified that the pullout in Greece was a strategic move as it had already pursued authorization in another European Union member state. The company said it will reveal the details of its new application when it sorts everything out.

Binance highlighted, “Europe remains an important market.” Hence, it has committed to operate in the area under a clear, fair, and harmonized MiCA framework.

The crypto exchange emphasized that its priority revolves around customers’ interests. So, given the current status and timeline of the Greek process, it elected to seek approval elsewhere. It reminded users that they may be temporarily affected by the latest developments and ensured it would communicate all matters pertinent to the current issue.

The Shady Reason Behind the HCMC Withdrawal

Neuner explained that Greece initially warmly welcomed Binance’s CASP application. After all, it meant tax revenue of over $200 million and the opening of more than a hundred local jobs.

HCMC claimed that Binance had complied with all its regulatory and legal requirements. Less than a month later, the agency began giving the exchange the cold shoulder and eventually denied its license.

Neuner claimed that Greece caved from European Central Bank (ECB) pressure as it prepares to roll out the Digital Euro Central Bank Digital Currency (CBDC). For him, the easiest way for the EU central bank to ensure the CBDC’s mass adoption is by eliminating the threat posed by crypto.

To date, Binance accounts for more than a 50% share in Europe’s digital asset market. That means it controls the same level of crypto liquidity. Greece has been reliant on ECB funding, so it was easy for the organization led by Christine Lagarde to impose its will on the Greek government.

Industry insiders suggest Binance has sought to fast-track its MiCA application through France to prevent service disruptions as the July 1st deadline approaches.

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