Overview
Binance has moved to establish a regulatory foothold in Europe by applying to operate from Greece under the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework. The application, submitted last month, reflects a calculated choice by the world’s largest cryptocurrency exchange to prioritize local labour availability and security attributes as decisive factors when selecting a European base.
Why Greece?
Speaking on the sidelines of the GFTN Forum in Tokyo, Binance co-CEO Richard Teng highlighted considerations beyond the uniform legal template of MiCA. "The license is pretty standard throughout Europe, so we have to think through many other factors, whether it’s social, whether it’s talent pool, safety and security issues," Teng said. He added, "Greece is where we think will be a good base for us to expand in Europe."
The choice is somewhat unconventional: regulator data show Greece has not yet issued a MiCA license, while Germany has issued 45 and the Netherlands 22. Binance’s decision to pursue a Greek application contrasts with larger financial centres that already have active licensing landscapes.
Regulatory timing and company positioning
Under MiCA, crypto firms must secure a license by July 2026 to continue operating in EU markets. Teng, who previously served as a regulator in Singapore and Abu Dhabi, said he would defer to European authorities on whether Binance will receive its license before that deadline. Since taking leadership in November 2023, Teng has emphasized making Binance one of the most regulated crypto exchanges worldwide.
Scale and custody
The exchange maintains substantial customer holdings of bitcoin, with about $44 billion worth of the asset held in customer wallets. Binance serves roughly 300 million users globally and lists Abu Dhabi as its global regulatory home.
Leadership, legacy legal issues and scrutiny
Teng addressed lingering questions tied to Binance’s past leadership and regulatory challenges. Former CEO and founder Changpeng Zhao pleaded guilty to violating U.S. money-laundering laws, a case that resulted in a nearly four-month prison sentence and a $4.3 billion fine. Teng noted that Zhao, who received a pardon from U.S. President Donald Trump last year, remains active as a shareholder. Teng also said the founder would need to answer questions about any potential return to the company.
Recent media reports suggested Binance investigators found evidence of $1.7 billion in crypto transfers involving Iranian and Russian actors, prompting an inquiry from Connecticut Senator Richard Blumenthal. Teng described those reports as misleading and said that the investigators named in the coverage were terminated for breaching data-handling policies rather than for uncovering suspect transfers. He reiterated the company policy: "We do not serve residents of sanctioned countries," while acknowledging that entirely eliminating suspicious transactions conducted over blockchain systems is impossible.
Executive team and strategic moves
In December, Binance elevated Yi He, a co-founder and long-time romantic partner of Zhao, to co-CEO. Teng described the appointment as a "natural progression" for the company as it expands, and said he and Yi He bring "complementary strengths" to the executive team.
Market context and investor flows
Crypto markets remain volatile: bitcoin has declined approximately 50% from its record high of just over $126,000 in October. Binance has taken active steps to support market liquidity, including spending $1 billion from an emergency fund to buy bitcoin in an effort to stabilise the asset’s price. Teng said retail sentiment has softened, but that institutional and long-term investors continue to deploy capital: "The smart money, the institutional money, the long-term money still continues to invest," he stated.
Implications
Binance’s Greek application and the public comments from its co-CEO underscore the exchange’s push to secure a regulated position in the EU while addressing compliance and reputational issues that have drawn scrutiny from U.S. authorities and lawmakers. The decision to weigh local labour and security considerations alongside regulatory uniformity signals a strategic approach to jurisdiction selection as the company seeks broader acceptance by regulators and institutional market participants.