Binance is actively seeking a new regulatory entry point in the European Union after withdrawing its Markets in Crypto-Assets (MiCA) license application in Greece. Co-CEO Richard Teng confirmed that regulators from other EU member states have invited the exchange to apply under their jurisdictions, though discussions remain "premature" and the specific countries have not been named.
The withdrawal came after Greek regulators were reportedly preparing to reject Binance's bid. Teng expressed surprise, stating that the exchange had submitted a fully compliant application and had received indications that approval would be granted. The decision to pull out was driven by concerns over delays that would have left users with an impractically short transition period before MiCA's July 1 deadline. Following the withdrawal, 70% of withdrawn EU user funds moved to self-hosted wallets, while only 30% went to MiCA-regulated entities. Binance saw $1.23 billion in weekly net outflows during the period, a sharp increase from $400 million the prior week.
While the path to European licensing remains uncertain, Binance is intensifying its focus on Asia. Teng highlighted deployments across Japan, Korea, Thailand, Indonesia, and Australia, along with a newly announced partnership in the Philippines with local fintech firm Blockshoals Technologies. The exchange plans further aggressive expansion in the region, which could help offset the regulatory setbacks in Europe.
The competitive landscape is shifting as well. Rival OKX reported a 158% increase in app downloads between June 24 and July 5, underscoring how quickly licensed competitors can capitalize on transition friction. Market conditions add further complexity, with Bitcoin trading down nearly 30% this year and broader sentiment dampened by ETF outflows and weak investor appetite. Nevertheless, Teng emphasized a rise in institutional engagement, with Binance recording a 9% increase in institutional client onboarding versus 7% overall growth, which he sees as a healthier market dynamic.
