Binance uses regulatory exceptions to serve EU customers without MiCA license

Binance continues to serve some customers within the European Union despite lacking a license under the new Markets in Crypto-Assets (MiCA) regulatory framework. Following the July 1 deadline for MiCA compliance, the cryptocurrency exchange has utilized specific regulatory loopholes to maintain its presence in the region.

One primary method is the ‘reverse solicitation’ exception, which allows non-authorized firms to provide services if a client approaches them entirely on their own initiative without active solicitation from the firm. Additionally, reports indicate that some EU user trades are being processed through a Binance entity located in Abu Dhabi, which operates under a different regulatory jurisdiction.

European regulators, including the European Securities and Markets Authority (ESMA), are monitoring the situation closely. While Binance has withdrawn previous license applications, such as its recent withdrawal in Greece, the company maintains that it is working toward obtaining a MiCA license and remains committed to complying with local laws in all active regions.