Binance has defended the European Union’s Markets in Crypto-Assets (MiCA) framework, arguing that its success should be measured by the number of cryptocurrency firms it brings into the regulated market rather than those it leaves outside.
The comments, made by Binance’s Head of Europe and the U.K., Gillian Lynch, come after the exchange withdrew its MiCA license application in Greece, leaving it unable to continue certain services for European users following the July 1 regulatory deadline.
Binance Defends MiCA Despite Licensing Setback
Lynch said MiCA has the potential to become the global benchmark for crypto regulation but argued that its effectiveness should be judged by how many companies become regulated rather than by simply establishing a rulebook.
“Is the success of MiCA that we have regulation, or is the success that the players are regulated?”.
She added that regulation should encourage participation from major market players instead of excluding firms that have invested heavily in compliance.
Responds to Financial Crime Allegations
Binance also pushed back against recent reports alleging shortcomings in its anti-money laundering controls. Lynch said the exchange identified suspicious activity, removed the affected accounts, and reported them to law enforcement as soon as the activity was detected.
She rejected claims that Binance ignored sanctions concerns or retaliated against compliance staff, calling such allegations “categorically false.”
Binance sued The Wall Street Journal in March 2026, alleging defamation over a report on its handling of suspicious Iran-linked transactions, claims the exchange has repeatedly denied
Europe Remains a Strategic Market
Despite withdrawing its Greek application, Binance said it is not exiting Europe. The company plans to pursue a MiCA license through another EU member state while continuing to support affected users during the transition period.
Lynch also backed a regulatory model where national authorities continue issuing MiCA licenses while the European Securities and Markets Authority (ESMA) takes a stronger supervisory role over the region’s largest crypto firms, according to Wall Street Journal.
Excluding the world’s largest crypto exchange from the MiCA framework could reduce liquidity and weaken market infrastructure across Europe’s digital asset ecosystem.
While acknowledging the recent setback, Lynch maintained that MiCA represents a positive step for the crypto industry by providing clearer rules, improving consumer protection, and helping integrate digital assets into the broader financial system.
