Binance Reaffirms EU Commitment and Seeks Expansion Licenses in Asia
Binance's Regulatory Efforts and Market Outlook
By Rae Wee and Sumeet Chatterjee
Binance's Engagement with EU Regulators
SINGAPORE, July 9 (Reuters) - Cryptocurrency exchange Binance remains in "close talks" with regulators in the European Union over its application to operate in the bloc and is seeking to secure more licences in Asia, said its co-chief executive Richard Teng on Thursday.
"We are in close talk with regulators that invited us to apply (to) their regime. It's premature, so we shan't name which regulators, but we still continue to work very closely with EU regulators," said Teng, who was speaking in an interview at the Reuters NEXT Asia event in Singapore.
Withdrawal of MiCA License Application in Greece
It comes as Binance, the world's largest cryptocurrency exchange, announced last month that it had withdrawn its Markets in Crypto-Assets Regulation (MiCA) licence application in Greece and is seeking to pursue authorisation in another EU member state.
Crypto companies must obtain a MiCA license by July 2026 to continue operating in the EU.
A senior executive told Reuters previously that the exchange intends to stay in the EU and will make a fresh push for permission to operate there, with the fate of its customers based in the bloc uncertain.
Uncertainty Around Regulatory Approval
"It caught us by surprise, because we submitted a fully compliant regulation, the regulators told us as much ... they were telling us that it will be approved," said Teng on Thursday.
"So we are not quite sure why the approval kept being delayed."
He added that the decision to withdraw the application was done to prevent Binance users in the EU from facing a "short transitional period".
Expansion Efforts in Asia
Teng, who leads Binance in a dual leadership structure with co-founder Yi He, said the exchange is also seeking licences across Asia.
Binance recently announced its expansion into the Philippines through a partnership with local fintech company Blockshoals Technologies.
"A few more (are) coming... we are going to expand our footprint quite aggressively," said Teng.
Crypto Market Challenges and Outlook
Current Market Conditions
CRYPTO WOES
Crypto markets have struggled this year on the back of heightened market volatility, investor hype around big expected IPOs and persistent ETF outflows that track the assets.
Bitcoin, the world's largest cryptocurrency, is down nearly 30% this year and has fallen more than 50% from a record high hit last October.
Citigroup this month slashed its 12-month forecasts for bitcoin and ether, saying weakening investor appetite, negative exchange-traded fund flows and a lack of progress on U.S. digital asset legislation have hurt the outlook for the two largest cryptocurrencies.
Institutional Interest and Binance's Growth
However, Teng remains optimistic about the longer-term outlook for crypto, citing greater interest among institutional investors in the asset class.
"Unlike (the) previous cycle, which (was) mainly a retail play, this cycle you see a lot more institions, you see a lot more corporates. It makes for a healthier marketplace," he said.
Teng added that Binance recorded a 9% increase in institutional clients being onboarded this year, compared to a 7% increase in the platform's overall new customers.
"Every time people say that bitcoin is dead, that's the time that I'll go all in."
Further Information
View the live broadcast of the World Stage and read full coverage of the summit here.
(Reporting by Rae Wee and Sumeet Chaterjee; additional reporting by Rushil Dutta; Editing by Kim Coghill)
