OKX CEO Star Xu rejected Binance founder Changpeng Zhao's claim that Binance's failure to secure a MiCA license in Greece was a loss for Europe. Binance withdrew its Greek MiCA application last week and said it would seek authorization in another EU member state. Zhao said the application had been "fully compliant" and close to approval before "other forces" pushed back, calling the result "a loss for Binance" and "also a loss for Europe." Star Xu questioned that framing in a post on X, asking what European users had lost and citing public reports that suggested Binance failed to demonstrate effective anti-money laundering, sanctions compliance, and market integrity programs. The exchange comes as crypto firms prepare for the July 1 MiCA deadline, after which unlicensed platforms must stop offering certain services in the EU unless they hold authorization from a member state regulator.
Star Xu Questions Binance's Compliance Claims
Star Xu asked in his X post, "What a huge loss? A loss for whom—European regulators or the people of Europe?" He said public reports suggested Binance had failed to show that its anti-money laundering, sanctions compliance, and market integrity programs were effective. He wrote that the exchange did not obtain a license and should reflect on the reasons. Star said claiming Europe was the loser after the withdrawal said "a great deal" about the company's attitude toward the rule of law and financial regulation. In a follow-up post, Star said more exchanges are choosing to comply with MiCA by serving EEA users through licensed EU entities. He added that public reports indicating Binance continues to serve users in most EEA countries through offshore entities, if accurate, raise questions about its regulatory approach. Star later wrote, "In my view, that's another example of misleading the public through false or misleading statements," responding to a post criticizing how Binance's MiCA withdrawal had been framed.
CZ Describes Two-Country Bidding Process for MiCA Application
Zhao said during an interview that two EU countries wanted Binance's MiCA application. He described the process as a "bidding war" of some kind before saying other forces opposed the approval. "There were two countries in the EU that wanted the Binance application," Zhao said. "Because of that, there was actually a bit of a back and forth and a fight over it." Zhao did not confirm claims that European Central Bank President Christine Lagarde played a role in blocking the application. He said he had seen similar claims online but had no direct documents to support them. Binance co-CEO Richard Teng said the company remains committed to securing a MiCA license "in the coming months." The exchange has also said customer assets will remain accessible as it adjusts services for European users. Despite the MiCA license failure, the BNB price has not wavered. At press time, the BNB price was up 2% to trade at $560 after a bearish 24 hours.
Regulators Approve 244 MiCA Licenses Ahead of July 1 Deadline
As of Monday, regulators had approved 244 MiCA licenses. Germany had the highest total with 57 approvals, while Greece, Hungary, Poland, Portugal, and Romania had not issued any licenses. MiCA allows licensed crypto asset service providers to operate across the bloc through passporting rights. This system gives approved firms a regulatory route to serve users in all EU member states. Bybit Global has announced phased restrictions for EEA users. The exchange said affected users will receive notices before changes take effect and will keep access to assets held in custody during the transition. ESMA has warned users that MiCA protections apply only to the licensed European legal entity providing the service. The warning means users must check which legal entity holds their account, even when a platform uses the same global brand.
Coinbase, Kraken, OKX Launch Promotional Offers for EEA Users
Licensed exchanges are using the MiCA shift to attract users from platforms that face service limits. OKX is offering eligible users an 8% bonus on crypto transfers and cash deposits, capped at €20,000. The rewards will be paid over 52 weeks. Coinbase is offering a 5% transfer bonus for eligible users who move funds before July 13. Kraken has launched a €1 million prize draw, with one entry for every euro deposited between June 22 and July 31.
FAQ
What did Binance's MiCA application failure involve?
Binance withdrew its MiCA license application in Greece last week after the application did not receive approval. Binance founder CZ said the application had been "fully compliant" and close to approval before "other forces" pushed back. The company said it would seek authorization in another EU member state.
Why did Star Xu criticize CZ's statement about the MiCA withdrawal?
Star Xu questioned CZ's claim that the withdrawal was "a loss for Europe." He cited public reports suggesting Binance failed to demonstrate effective anti-money laundering, sanctions compliance, and market integrity programs. Star said claiming Europe was the loser after the withdrawal reflected the company's attitude toward the rule of law and financial regulation.
How many MiCA licenses have EU regulators approved as of Monday?
Regulators had approved 244 MiCA licenses as of Monday. Germany had the highest total with 57 approvals, while Greece, Hungary, Poland, Portugal, and Romania had not issued any licenses. The MiCA deadline is July 1, after which unlicensed crypto firms must stop offering certain services in the EU unless they hold authorization from a member state regulator.
