Despite the Greek withdrawal, she said she supports MiCA remaining a system in which national regulators grant licenses, while the European Securities and Markets Authority (ESMA) plays a larger supervisory role over the largest firms. Binance is not the only crypto exchange suspending crypto services by July 1.
ESMA privately advised national regulators to disapprove Binance’s MiCA applications, highlighting issues the exchange has meeting compliance with financial-crime rules, the Wall Street Journal reported on Wednesday, citing people familiar with the discussions.
Lynch said the WSJ’s reporting “mischaracterises how these accounts were identified, reviewed and acted upon. With regards to the cases raised in recent reporting, as soon as Binance uncovered these complex patterns of activity, it offboarded all accounts involved in those transactions and reported them to law enforcement. This is the complete picture that the headlines omitted.”
Lynch disputed the report, saying it “mischaracterises how these accounts were identified, reviewed and acted upon.” She also said the accounts referenced were offboarded and reported to law enforcement as soon as Binance identified the activity, adding that “this is the complete picture that the headlines omitted.”
She also rejected suggestions that Binance ignored sanctions concerns or retaliated against compliance staff, calling such allegations “categorically false.” Binance previously sued the WSJ over reporting on these Iran-linked accounts from earlier in the year.
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