Multiple media reports say that Binance, the world’s largest cryptocurrency exchange, is likely to lose its operating license in the European Union (EU).
Binance currently operates across Europe. But under new rules, crypto exchanges need to apply for a new license by the end of June this year to continue serving European clients.
Binance’s application to continue operating in Europe, which has been made to Greece’s market regulator, is set to be rejected, according to media reports.
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The rejection is likely as European regulators seek to reign in cryptocurrency exchanges that allow people to trade Bitcoin (CRYPTO: $BTC) and other digital assets.
Under the new rules, crypto firms such as Binance must apply for licences from regulators in individual European countries, which they can then use as a passport to operate across the EU.
At stake for Binance is access to Europe’s lucrative and growing cryptocurrency industry.
A rejection by the Greek regulator would mean that Binance will effectively be shutout of the European market, leaving its customers in limbo.
Binance posted on social media that it intends to “support an orderly process and minimise disruption to our users,” without providing further details on the situation in Europe.
Binance, which currently has 300 million customers worldwide, has been pursuing a new European operating licence for the past 18 months.
Binance has said previously that it believes its operations are compliant with European rules and that it should be granted a license.
However, without a licence, Binance would not be able to continue operating in the European Union starting on July 1 of this year.
Binance is privately held and its stock does not trade on a public exchange.