Binance’s MiCA Warning: 80% of Companies Could Vanish, Affecting 10 Million People

Binance Head of Europe Gillian Lynch argued that the success of the MiCA regulation should be measured by the number of licensed players integrated into the system, rather than the number of excluded companies.

Binance, the world’s largest cryptocurrency exchange, shared its vision regarding the European Union’s new crypto-asset regulation, MiCA (Markets in Crypto-Assets). Gillian Lynch, the company’s Head of Europe and the UK, emphasized that the primary goal of the regulatory framework should be to securely integrate the industry into the system rather than exclude it. While the exchange recently withdrew its license application in Greece, it maintains its commitment to the European market and continues to believe in MiCA’s potential to become a global standard.

Binance stated that it invests over $300 million annually to meet compliance standards and employs more than 1,500 specialized personnel worldwide. Contrary to negative claims in the press, Lynch stated that they report suspicious accounts to law enforcement as soon as they are detected and that their application in Greece was technically complete. The exchange’s suspension of certain services during this process is considered a strategic step taken to ensure users comply with the new regulations.

MiCA Regulation and the Transformation of the Crypto Market

It is predicted that 80% of the approximately 3,000 registered crypto service providers operating in Europe may not survive after MiCA. This means that approximately 10 million users may be forced to switch platforms. Lynch stated that Binance makes a significant contribution to the ecosystem by providing liquidity and infrastructure, and therefore, the exclusion of major players from the system could harm the entire market.

The company announced that they are not leaving the European market and are working on a new licensing strategy. Lynch stated that MiCA brings maturity to the industry and that cryptocurrencies are a permanent part of the financial services ecosystem. While prioritizing support for its users during the transition period, Binance aims to have a strong presence in the market in full compliance with regulations.