Changpeng Zhao, Binance's founder, claimed the exchange's application for an EU license under the Markets in Crypto Assets Regulation (MiCA) was "fully compliant" and nearing approval when political pressure derailed it, according to The Block.
Zhao did not name which political actors intervened, specify which regulator held the application, or offer a timeline for the review. He also did not provide documentation supporting the claim that the application was close to approval.
Binance has sought authorization to operate in the EU for years. MiCA, which took effect in December 2023, requires crypto service providers to obtain licenses from national regulators before offering services in EU member states. The rule set a December 2024 deadline for existing providers to secure compliance, though extensions have been granted in some jurisdictions.
Zhao's statement sits at an angle to the public record. In recent months, several EU member states have taken enforcement action against Binance. France's financial regulator imposed a €100 million fine on the exchange in July 2024 for operating without authorization. Italy and Poland have also issued cease-and-desist orders. These moves suggest regulators have treated Binance as noncompliant rather than nearly approved.
The claim also mirrors a familiar playbook in crypto regulation. Executives often cite unnamed political interference when denied licenses, recast compliance rejections as procedural unfairness, and resist detailed public disclosure of why applications failed. Without documented evidence from the regulator, the application timeline, or the specific compliance gaps flagged, Zhao's account cannot be independently verified.
MiCA compliance remains a live pressure point for major exchanges. Kraken announced in July 2024 that it would wind down all services in the EU as the compliance costs proved prohibitive. Coinbase has navigated MiCA by applying selectively in certain member states while exiting others. The EU regulator framework has shown less tolerance for the largest platforms than the UK pre-2023 model did, and member states have interpreted MiCA rules with varying strictness.
If Binance's application truly reached an advanced stage before being stalled, regulators would hold internal records of review steps, compliance findings, and any decision to halt processing. Zhao has not released those documents, and the newsroom has not obtained them. His statement functions as an assertion without supporting evidence.