OKX CEO Pushes Back on CZ’s Claim That Binance’s MiCA Failure Is Europe’s Loss

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OKX CEO Star Xu has publicly challenged Binance founder Changpeng Zhao’s comments regarding the exchange’s unsuccessful attempt to obtain a Markets in Crypto-Assets (MiCA) license in Greece, as the European Union prepares to fully implement its MiCA regulatory framework on July 1.

The exchange between the two executives comes at a significant moment for the European crypto industry, with crypto asset service providers required to operate under MiCA authorization to continue offering regulated services across the European Economic Area (EEA).

Star Xu Questions Binance’s Position on MiCA Licensing

Changpeng Zhao, widely known as CZ, said Binance’s MiCA application in Greece had been fully compliant and was reportedly close to approval before what he described as “other forces” prevented the process from moving forward. Following the withdrawal of its Greek application last week, Binance announced that it intends to pursue authorization in another European Union member state.

Responding on X, Star Xu questioned Zhao’s characterization of the outcome as “a loss for Europe.” He asked:

“What a huge loss? A loss for whom-European regulators or the people of Europe?”

Xu said publicly available reports suggested Binance had not demonstrated that its anti-money laundering controls, sanctions compliance measures, and market integrity programs met regulatory expectations. He added that the exchange should instead examine the reasons why it did not receive regulatory approval.

He further stated that portraying Europe as the loser following the application’s withdrawal raised broader questions about the company’s approach to financial regulation and the rule of law.

In a separate post, Xu said an increasing number of crypto exchanges are choosing to comply with MiCA by serving EEA customers through licensed European entities. He also stated that if public reports claiming Binance continues to serve users in most EEA countries through offshore entities are accurate, they would raise additional regulatory questions.

Later, Xu described Binance’s public messaging as another example of “misleading the public through false or misleading statements,” responding to criticism surrounding how the MiCA withdrawal had been presented.

Binance Says It Was Close to Approval

During an interview, Zhao said two European Union countries had expressed interest in hosting Binance’s MiCA application and described the licensing discussions as involving a “back and forth” between jurisdictions.

He said there had been competition between two EU member states regarding Binance’s application before claiming that external opposition ultimately prevented approval.

Zhao also addressed online claims suggesting European Central Bank President Christine Lagarde influenced the licensing decision. He said he had seen such reports circulating but had no documents or direct evidence supporting those claims.

Binance co-CEO Richard Teng has reiterated that the company remains committed to securing a MiCA license in the coming months. The exchange has also stated that customer assets will remain accessible while it adjusts services for European users during the regulatory transition.

July 1 MiCA Deadline Marks Key Regulatory Milestone

The public disagreement comes just before the European Union’s July 1 MiCA implementation deadline, when crypto firms operating without authorization must stop offering certain regulated crypto services unless they receive approval from a member state’s regulator.

Under MiCA, licensed crypto asset service providers can use passporting rights to legally offer services across all EU member states after obtaining authorization in a single jurisdiction. The framework is designed to create a unified regulatory regime for the European crypto market.

According to the latest available figures, regulators had approved 244 MiCA licenses as of Monday. Germany led all member states with 57 approvals, while Greece, Hungary, Poland, Portugal, and Romania had not yet issued any MiCA licenses.

The approaching regulatory deadline is expected to accelerate licensing efforts among crypto exchanges seeking uninterrupted access to European markets under the bloc’s new regulatory framework.

Recently, Spain confirmed there will be no extension to the July 1 MiCA deadline, requiring unlicensed crypto firms to halt regulated services. The decision reinforces the EU’s MiCA rollout as firms race to secure regulatory approval.