Binance’s application for a licence under the EU’s Markets in Crypto-Assets (MiCA) framework is on the verge of rejection, potentially stripping the exchange of its authorisation to serve European Union clients as early as July, according to a Reuters report.

Under MiCA, crypto firms were required to secure authorisation in at least one EU member state by the end of June in order to continue servicing customers across the bloc. A licence obtained in one country acts as a regulatory “passport” enabling operations across all 27 member states.

Binance submitted its application through Greece’s Hellenic Capital Market Commission (HCMC). The regulator is expected to turn down the filing, Reuters reported, citing two sources familiar with the matter. The HCMC declined to comment, citing confidentiality rules.

The company, however, offered a different account. In an official blog post, Binance stated that the HCMC had completed its review and “considered it compliant” with MiCA requirements, adding that the application had also been subject to review at the level of the European Securities and Markets Authority (ESMA).

“We entered the process of pursuing a MiCA licence in Europe in good faith, submitted a comprehensive application, and worked constructively with the HCMC over many months,” the company said.

Binance confirmed it remains committed to its European users and will continue operating in compliance with applicable law, with a further update expected before 30 June.