Binance withdraws stablecoin licensing applications in Greece

Binance, the world’s largest cryptocurrency exchange, attempted to secure licensing in Greece to facilitate its operations within the European Union, but faced significant regulatory hurdles.

Reports indicate that Binance submitted an application to the Bank of Greece to operate as an Electronic Money Institution (EMI) for the purpose of issuing stablecoins. The central bank was prepared to reject the application due to compliance deficiencies, prompting the company to withdraw it. Additionally, Binance withdrew a separate application to the Hellenic Capital Market Commission to operate as a crypto-asset service provider under the MiCA framework, which would have provided a ‘passport’ for activities across the EU.

The scrutiny follows Binance’s November 2023 guilty plea in the United States regarding anti-money laundering violations, which resulted in a $4.3 billion fine and the imprisonment of former CEO Changpeng Zhao. The company also faces investigations regarding potential sanctions violations. While stablecoins are viewed as safer due to their peg to traditional currencies, the European Central Bank has warned they could undermine European monetary sovereignty, as 99% are issued in US dollars.