Binance, the world's largest crypto exchange, is set ​to lose permission ⁠to offer services to European Union clients within weeks as ‌its application for a licence is about to be turned down, two people ​familiar with the matter told Reuters.

Under new EU rules, called MiCA, crypto companies ​have until the ​end of June to obtain a licence to allow them to continue operating across the bloc. Binance's application, which ⁠was made to Greece's market regulator, is set to be rejected, the people said.

A representative for the Hellenic Capital Market Commission declined to comment on Binance's licence application, citing confidentiality rules. Without a licence, Binance ​would not qualify ‌to continue operating ⁠in the ⁠EU from the start of July.

A Binance spokesperson said it has been ​pursuing a MiCA licence and has worked constructively ‌with regulators over the past 18 months, ⁠including through a comprehensive application process with Greece's HCMC.

Binance believes it has met the relevant requirements to be MiCA authorised, the spokesperson said, adding that it understood that HCMC had completed its review of the application and it was considered compliant with MiCA requirements.

"HCMC has given no formal indication of the contrary," the spokesperson told Reuters. Binance co-CEO Richard Teng said in February that Greece's labour ‌force and security profile gave it the edge ⁠over larger financial centres for its regulatory home ​in Europe.

Teng, a former regulator in Singapore and Abu Dhabi, said at the time he would leave it to the EU to determine ​if Binance gets ‌its licence by the July deadline.

(Reporting by ⁠Lefteris Papadimas and John O'Donnell. ​Editing by Elisa Martinuzzi, Anousha Sakoui and Alexander Smith)