Changpeng Zhao, chief executive of Binance, stated that the exchange's application for a Markets in Crypto-Assets Regulation (MiCA) certificate in Greece fully met regulatory requirements and was close to approval by at least one European Union regulator before political pressure led to its withdrawal last week.
Zhao claimed that 70% of fund withdrawals by users from EU countries were directed to self-custodial wallets rather than to MiCA-regulated platforms, suggesting that stricter compliance requirements may simply redirect user activity rather than enhance consumer protection. The statement indicates Binance's view that regulatory barriers do not necessarily improve market safety when alternative, less-regulated channels remain accessible.
The withdrawal of Binance's MiCA application marks a significant setback for the exchange's European expansion strategy and reflects ongoing tension between the cryptocurrency industry and EU policymakers over regulatory implementation. The incident underscores how political considerations can override technical compliance assessments in the approval process for crypto operators in the bloc.