Crypto news

On July 7, 2026, the European Parliament approved an official position on the further regulation of digital assets. The document, titled "Digital Assets – Challenges for the Competitiveness and Integrity of the EU Financial System," now represents a political platform but does not introduce direct amendments to MiCA or create new legal obligations for crypto companies.

The key message is the need to expand oversight to sectors that have so far remained outside the regulation's scope. The priority list includes: DeFi, crypto lending and borrowing, staking, and NFTs. This comes immediately after the end of MiCA's transitional period on July 1, when all crypto companies in the EU switched to mandatory licensing. The main goal is to prevent fragmentation of the single market, where individual countries create their own local rules.

At the same time, regulators noted positive aspects. The European Parliament supported the development of RWA (real-world assets) and the use of euro stablecoins, stating that with a sound approach, they would strengthen the competitiveness of the EU's financial system. Public consultations on a possible expansion of MiCA are scheduled for May 2026. Their goal is to gather feedback on potential changes: including additional types of crypto activities and revising restrictions related to yield-bearing stablecoins.

Binance's Position: Exit or Adaptation?

On June 24, Binance withdrew its application for a MiCA license in Greece, stating its intention to obtain authorization in another EU country without disclosing the specific jurisdiction. On July 4, the exchange's co-CEO Richard Teng clarified the situation: "Binance is not leaving Europe and is not abandoning MiCA. Europe remains an important market, and we are still committed to finding a constructive way forward through proper channels." He emphasized that Europe has the opportunity to become a global leader in digital asset regulation, but being "number one" requires predictable, proportionate, and consistent implementation.

Teng added: "Work continues. Binance is ready to contribute. European users deserve for the MiCA framework to fulfill its original promise." As a reminder, on June 29, the exchange Bybit also warned of a phased restriction of some services for residents of the European Economic Area.

My analysis. Expanding MiCA to DeFi and NFTs is a logical step, given that these sectors remained a "gray area" and posed risks to market integrity. However, real effectiveness will depend on how flexibly regulators approach decentralized protocols. If they try to apply the same strict requirements to DeFi as to centralized exchanges, it could stifle innovation in Europe. Binance's position, which temporarily withdrew its license, signals that even major players are seeking the most favorable jurisdictions within the bloc. Europe stands at a crossroads: either become a global hub for digital assets or drive away business with excessive regulation.