Binance founder Changpeng Zhao (CZ) said that Binance’s MiCA license application in Greece was fully compliant and very close to approval, but that political forces subsequently interfered in the process.
CZ claimed that Binance’s application for a MiCA license in the European Union had progressed in Greece, but that political factors, rather than regulatory compliance, were behind the process that resulted in the withdrawal of the application last week.
CZ said, “There were two countries in the European Union that wanted Binance’s application. So there was a kind of rivalry and struggle between them. It was like a bidding war. But unfortunately, there were other forces against it.”
There is speculation in the market that European Central Bank President Christine Lagarde played a role in blocking Binance’s application. CZ has neither directly confirmed nor denied this claim. Zhao said he had seen the same information online but did not have any direct documents to support it, and he did not know if he had heard of any verified documents from Binance’s side.
Last week, Binance officially withdrew its MiCA application in Greece and announced it would continue the authorization process in another EU member state. Binance co-CEO Richard Teng stated that the company aims to obtain the license “in the coming months” and remains committed to the European market.
The July 1 deadline for unlicensed cryptocurrency companies to cease their EU operations under MiCA expires on Tuesday.
CZ described the current situation as a loss for both sides. Zhao stated, “I think the current situation is unfortunately a loss for Binance; it’s also a loss for Europe. It’s a lose-lose situation.”
CZ also touched upon the regulatory processes Binance faced in Japan and Singapore in the past. He recalled that Binance faced regulatory warnings as early as 2018 in Japan, but received a full license from the Japanese Financial Services Agency in early 2023. Regarding Singapore, CZ stated that Binance was forced to withdraw its application in 2021, and users subsequently turned to FTX, adding, “We know how that turned out.”
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CZ Also Spoke About the STRC Product, Which Has Recently Caused Bitcoin to Fall
CZ also commented on Michael Saylor’s Strategy company’s STRC preferred shares during the program. STRC had been trading about 26 percent below its nominal value of $100 in recent weeks, along with the pullback in Bitcoin prices.
Today, Strategy announced a new framework called Digital Credit Capital Framework, increased the STRC dividend rate to 12%, and announced a $1 billion share buyback program to close the discount.
CZ said he had tried several times to understand STRC but couldn’t fully grasp the product. Zhao stated, “I tried a few times to understand STRC. I don’t think I fully understood it. I think many of these financial products are generally too complex; they seem over-engineered.”
According to CZ, STRC’s use of Bitcoin as underlying collateral creates a structural tension. Zhao stated that while the thesis of Bitcoin’s long-term appreciation may be strong, its volatile nature creates a challenging foundation for leveraged financial products.
However, CZ added that he did not view the criticisms of STRC’s complexity as an accusation against Michael Saylor’s intentions. “Michael isn’t the type of person to go out and make a fake or fraudulent product,” Zhao said. “He’s a reputable person and a staunch Bitcoin advocate.”
*This is not investment advice.
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