OKX founder Star Xu has publicly criticized Binance’s communication strategy around its recent European regulatory challenges, arguing that transparency is essential for maintaining trust in financial markets.
In a post on X on Thursday, Xu responded to a post from a netizen “Tax Guy,” who had questioned Binance’s handling of concerns surrounding its European operations. Xu said credibility in financial services is built through openness and accurate information rather than attempts to shape public perception.
Star Xu questions Binance’s approach to public messaging
Xu said there is nothing inherently wrong with exchanges working with influencers and content creators, provided sponsored relationships remain transparent and factual. However, he accused Binance of attempting to influence the social media narrative around recent developments affecting its European business.
“Transparency and credibility is one of the most valuable assets in financial services,” Xu wrote, adding that trust depends on accurate communication rather than controlling public discussion.
Xu links compliance concerns to Binance’s EU licensing efforts
Xu’s latest remarks follow comments he made a day earlier regarding Binance’s regulatory strategy in Europe. In a post on X, the OKX founder criticized what he described as a “regulatory arbitrage game,” arguing that effective compliance is measured by outcomes rather than the size of compliance teams or organizational structures.
“Real compliance effectiveness comes from governance, transparency, accountability, and a willingness to operate within both the letter and the spirit of regulation—not from headcount alone,” Xu wrote. “Regulators are ultimately evaluating outcomes, not organizational charts.”
Binance withdraws Greece MiCA application, seeks new EU route
The debate comes as Binance yesterday confirmed it has withdrawn its application for a Markets in Crypto-Assets (MiCA) license in Greece and intends to seek authorization in another European Union member state.
In a statement released Wednesday, the exchange said it decided after months of discussions with Greece’s Hellenic Capital Market Commission (HCMC), concluding that the process did not offer the regulatory certainty and timeline needed for its long-term plans.
“We made this decision after careful consideration of the status and the timeline of the process in Greece, with our users’ interests at the center,” Binance said.
The company has not disclosed which EU jurisdiction it will pursue next but stated that it will announce its plans once finalized. Under MiCA, a Crypto-Asset Service Provider (CASP) license obtained in one EU member state can be passported across the bloc, making the choice of jurisdiction strategically important for exchanges seeking European market access.
Reference to previous market controversies
Xu also referenced a previous period of market volatility, claiming that public discussions at the time similarly sought to downplay Binance’s role despite the exchange later disclosing significant compensation payments to affected users.
While Xu did not provide additional details, he argued that the incident demonstrated the importance of transparent communication during periods of uncertainty.
Why is exchange communication under scrutiny?
As major crypto exchanges seek regulatory approvals across Europe, communication surrounding compliance, licensing, and operational changes has become increasingly important.
Under MiCA, exchanges operating in the European Union face stricter disclosure and compliance requirements, placing greater emphasis on how firms communicate regulatory developments to customers and the broader market.
The exchange of criticism between Xu and Binance critics reflects a broader industry debate over whether crypto companies should proactively disclose regulatory setbacks or focus communications on ongoing compliance efforts. Binance had not publicly responded to Xu’s comments at the time of writing.
Also Read: Did the $19B October 10 Flash Crash Doom Binance’s Greece MiCA Bid?
