Binance Founder CZ Says MiCA License Application Was Fully Compliant Before Political Pressure Forced Withdrawal

Binance founder Changpeng “CZ” Zhao said the exchange’s application for a Markets in Crypto Assets (MiCA) license in Greece was fully compliant and close to receiving approval before political factors led to its withdrawal.

According to CZ, at least two European Union countries wanted Binance’s MiCA application, creating competition over which regulator would grant the license. However, he said unnamed political forces ultimately prevented the process from moving forward.

CZ did not confirm reports suggesting European Central Bank President Christine Lagarde influenced the outcome, saying he had only seen the same claims circulating online and had not seen any verified evidence.

Binance Remains Committed to Securing a MiCA License

Binance officially withdrew its Greek application last week and confirmed it will seek authorization in another EU member state. Co-CEO Richard Teng said the exchange remains committed to obtaining a MiCA license in the coming months.

The withdrawal comes just before the July 1 MiCA deadline, when crypto companies operating without authorization must stop providing regulated services across the European Union. Spain’s securities regulator has already stated that no extensions or exemptions will be granted.

CZ described the situation as a “lose-lose” outcome, saying Europe loses access to one of the world’s largest crypto exchanges while Binance also misses an important market. He compared the situation to Japan, where Binance initially faced regulatory resistance before receiving a license in 2023, and Singapore, where Binance exited the market in 2021 before many users migrated to the now collapsed FTX.

CZ Says Strategy’s STRC Product Is Too Complex

CZ also shared his views on Strategy’s STRC preferred stock, admitting he still does not fully understand the product despite multiple explanations, including one from Michael Saylor himself.

He described STRC as “over-engineered,” saying financial products backed by Bitcoin become difficult to understand because of Bitcoin’s price volatility. However, CZ stressed that he has confidence in Saylor’s integrity and does not question his intentions.

“I nodded my head a lot, but I still don’t really understand,” CZ joked while recalling a conversation with Saylor.

CZ Reveals Donations and X Investment

CZ also disclosed that he donated $2 million to Prison Professors, a nonprofit founded by Michael Santos, who advised him during his four-month federal prison sentence. The donations were made through four payments of $500,000 after his release.

He further confirmed investing around $500 million in Elon Musk’s acquisition of Twitter, giving him roughly a 1% equity stake. CZ said he later approached Musk about integrating Binance into X Money, but Musk replied that the payment platform would not support cryptocurrency for now.