Binance is in talks with regulators that have invited the exchange to apply for crypto licenses following its withdrawal from the Markets in Crypto-Assets Regulation (MiCA) application in Greece, according to co-CEO Richard Teng.
Teng said at the Reuters NEXT Asia conference in Singapore on Thursday that the discussions are still “premature” and declined to identify the jurisdictions.
MiCA created a single licensing framework for crypto firms across the European Union. After the bloc’s transition period expired on July 1, the European Securities and Markets Authority said crypto firms must serve EU clients through a MiCA-authorized entity, with limited exceptions for unsolicited cross-border business.
Binance withdrew its application for a MiCA license in Greece on June 24, after reports surfaced that Greek regulators were planning to reject the exchange’s licensing bid.
“It caught us by surprise because we submitted a fully compliant application. The regulators told us as much,” Teng said.
“We are not quite sure why the approval kept being delayed. We withdrew the application because otherwise our users would have faced a very short transition period,” he added.
Related: EU crypto rulebook faces enforcement challenge as MiCA transition ends
EU users withdraw assets to self-custody
Teng argued that many European users opted for self-custody rather than transferring their assets to MiCA-authorized exchanges.
“Of the users in the EU [who] have subsequently withdrawn their funds out of our platform, 70% of those funds went to self-hosted wallets. Only 30% flowed to MiCA-regulated entities,” Teng said.
He questioned whether MiCA is meeting its consumer protection objectives, arguing that self-hosted wallets receive less regulatory oversight than licensed exchanges.
Binance recorded $1.23 billion in net outflows during the week beginning June 29, up 207% from roughly $400 million the previous week, according to DefiLlama data reviewed by Cointelegraph.
The transition has also intensified competition among exchanges holding MiCA licenses. OKX said in a statement that its app downloads rose 158% between June 24 and July 5, citing Sensor Tower data.
Binance questions MiCA’s impact
Beyond Europe, Teng said Binance continues to expand its regulatory footprint in Asia, citing its partnership in the Philippines.
“We have deployed in many places in Asia now, from Japan to Korea to Thailand, Indonesia, Australia. We just announced the Philippines. A few more are coming,” Teng said.
Related: ESMA turns spotlight on crypto custody risks after MiCA transition
Binance reentered the Philippine market through a partnership with BlockShoals Technologies after regulators moved to restrict access to the exchange in 2024. However, neither Binance nor BlockShoals is licensed by the Bangko Sentral ng Pilipinas to handle peso transfers or other central bank-regulated virtual asset services.
In a June interview with Cointelegraph, BlockShoals’ head of legal, Marie Antonette Quiogue, said the arrangement allows Binance to offer crypto trading because those activities fall under the jurisdiction of the Philippine Securities and Exchange Commission, while services regulated by the central bank would require separate authorization.
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