Binance stated that, although its attempts to promote operating licences in Greece had not progressed, the company would not leave the European market. Reuter quoted Binance, Gillian Lynch, the head of European and British operations, as saying that the exchange was assessing other approved routes and might have moved to different regulatory pathways.
The Greek application was not advanced.
This statement was made against the background of the fact that Binance had intended to operate under the EU regulatory framework through a Greek licensing arrangement, but that the process was not continuing. More specific reasons for blocking applications were not reported.
For Binance, the ability to obtain regulatory approval relates to its long-term operating arrangements in the EU market. As encryption regulation in Europe continues to tighten, the local branding of head trading platforms is becoming the focus of market attention.
Turn to another authorized path
Binance stated that the company was looking at alternatives that did not preclude authorization through other regulatory pathways. According to Reuters, this means that Binance may not continue to use Greece as a major breakthrough, but instead turn to other EU member States to advance the compliance process.
It was also mentioned that Binance had held discussions with regulators in Ireland and Latvia. This shows that its European configuration is not stagnating but is looking for new points for subsequent access.
Progress towards compliance in Europe is of concern
For investors and industry participants, how Binance responds to the changing regulatory environment for encryption in Europe will affect the coverage and stability of its operations on the ground. If the company eventually obtains authorization through other jurisdictions, it may also support its subsequent operation within the EU.