Binance, the world's largest cryptocurrency exchange, has strategically chosen Greece as its regulatory base for operations within the European Union under the forthcoming Markets in Crypto-Assets (MiCA) regulation. The exchange applied for a MiCA license in Greece last month, positioning the country as its gateway to the EU ahead of a July 2026 deadline that mandates all crypto firms obtain such a license to continue operating in the bloc.
The MiCA framework creates a single licensing regime across the EU, allowing firms authorized in one member state to 'passport' their services throughout the entire union. While Germany has issued 45 MiCA licenses and the Netherlands 22, Greece has yet to approve its first, making Binance's choice an unconventional one for a firm with approximately 300 million global users and a primary regulatory home in Abu Dhabi.
Co-CEO Richard Teng, speaking at the GFTN Forum in Tokyo, explained the decision was based on factors beyond mere regulatory speed. "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 stated. He highlighted Greece's labour force quality and security profile as key advantages over larger financial centres, adding, "Greece is where we think will be a good base for us to expand in Europe."
The move is part of Teng's broader strategy, implemented since he became CEO in November 2023, to position Binance as the "most regulated" crypto exchange globally. The timeline for approval of the Greek license now depends on EU authorities.
This expansion effort unfolds against a backdrop of past regulatory scrutiny. Binance founder Changpeng 'CZ' Zhao pleaded guilty to U.S. money laundering violations, resulting in a nearly four-month prison sentence and a record $4.3 billion fine for the company. Zhao, pardoned last year by former U.S. President Donald Trump, remains a shareholder. Teng also addressed recent media reports alleging Binance investigators identified $1.7 billion in crypto transfers involving sanctioned Iranian and Russian actors, calling the coverage "misleading" and stating the investigators were dismissed for breaching data policies, not for uncovering transfers. He reiterated Binance does not serve residents of sanctioned countries.
The regulatory push coincides with volatile market conditions. Bitcoin has fallen roughly 50% from its October record high of just over $126,000. In December, Binance deployed $1 billion from an emergency fund to purchase bitcoin to support market stability. Teng noted that while retail sentiment has weakened, institutional participation has remained steady despite price swings.
