Binance has confirmed it plans to remain active in the European Union and will make another effort to gain official permission to operate in the bloc after a licence application under a new EU regime failed, leaving access at risk for millions of users.
Gillian Lynch, who runs Binance's operations in Europe and the United Kingdom, said the company was not preparing to abandon the region and that it might pursue a different route to obtain authorisation. "Binance is not leaving Europe," she said, adding that if Greece was not the correct path she would consider other options.
"Binance is not leaving Europe. We may just have a different pathway to being authorised. If it is not Greece, I m looking at other alternatives."
The company's immediate timeline is tight. Binance has one week to secure a licence before its current permission to operate in Europe expires, a deadline that would otherwise force it to wind down EU operations.
Two people familiar with the process said Binance had held discussions with regulators in Ireland, Latvia and Greece but met resistance in all three countries. Officials in those jurisdictions were said to be wary because of the firm's history of penalties related to money laundering, its complex international corporate structure and what regulators described as a risk-taking culture. The authorities in those countries either declined to comment or did not respond to inquiries.
The approaches to multiple regulators underline the difficulties the company faces in converting its status into a formal EU licence. Lynch said the company did not understand why its application had been refused and that Binance had previously been under the impression the Greek regulator planned to grant authorisation.
Binance also indicated it had contacted four or five national regulators but submitted only one formal application, which was to Greece. When asked about the firm's past compliance issues, Lynch pointed to investments in compliance and internal controls and noted Binance employs about 1,500 compliance staff. She said there were no outstanding matters related to the licence application.
The situation leaves Binance at odds with European supervisors as it seeks to maintain market access. The company faces a short window to secure approval and has signalled it will pursue alternative regulatory channels if necessary.
What this means
- Binance intends to remain in the EU and will seek authorisation through alternate routes if Greece does not grant a licence.
- Regulators in Ireland, Latvia and Greece expressed reservations tied to past penalties, corporate structure and perceived culture of risk-taking.
- Binance says it has significantly increased compliance resources, employing roughly 1,500 staff in that area and reporting no outstanding issues connected to its application.