MiCA deadline risks Binance access, USDT liquidity

Greek regulators are preparing to reject Binance’s application for authorization under the EU Markets in Crypto-Assets regulation, a decision that could prevent the exchange from serving customers across the bloc after the July 1 deadline. Binance had applied in Greece and had planned to use that authorization to operate across all 27 EU member states from a single hub.

MiCA requires firms offering crypto services in the EU to obtain authorization. Issuers of fiat-backed stablecoins must register as electronic money institutions and meet rules on reserves, governance and disclosures. The deadline for firms to secure full authorization is July 1.

Research from Obchakevich Research shows that 194 of more than 3,000 crypto companies operating in Europe have obtained a license. The group found that about 60% of European crypto users still use unlicensed platforms and that 7.6 million of 18.5 million recent crypto app downloads in the region were for firms without MiCA authorization.

Binance has said it remains committed to securing MiCA authorization. The company is exploring France as an alternative hub. It already holds a digital asset service provider registration in France that permits limited activities such as custody and spot trading; a full MiCA license in France would restore broader passporting rights.

Tether has declined to seek EU approval for USDT, citing rules on how reserves must be held. Several major exchanges operating licensed EU venues have removed or restricted USDT access for customers in the region. By contrast, Circle’s USDC has secured MiCA compliance and remains available on licensed platforms.

Tether has invested in Dutch fintech Quantoz to support the launch of EURQ and USDQ, stablecoins structured as e-money products and operated under the supervision of the Dutch central bank. Those tokens are intended to provide a regulated option in Europe while USDT becomes less available on licensed venues.

The European Central Bank has urged lawmakers to advance legislation for a digital euro. The ECB has outlined a timetable in which a pilot could start in 2027 if legislation is adopted in 2026, and a possible first issuance could follow by 2029. Euro-denominated stablecoins rose to about €450 million in January from €50 million two years earlier. Dollar-denominated stablecoins remain near $300 billion.

European regulators view licensed exchanges as gatekeepers that influence which assets and stablecoins circulate on regulated venues. The coming weeks will determine which private firms can distribute digital assets in the EU and which stablecoins will be available on licensed platforms ahead of any public digital currency issuance.