Binance has kept serving and onboarding some EU customers more than two months after missing the bloc's July 1 MiCA licensing deadline. The exchange leans on a "reverse solicitation" exemption and routes some EU trading through an Abu Dhabi entity, while regulators press for details on its wind-down.
Binance has continued onboarding some European Union customers despite missing the bloc's MiCA licensing deadline on July 1 and withdrawing its Greek licensing application weeks earlier. The exchange has instead leaned on a regulatory exemption and offshore routing to keep parts of its EU business running.
Reverse solicitation and Abu Dhabi routing keep accounts open
People familiar with the matter said Binance has relied partly on MiCA's reverse solicitation provision, which permits certain services when customers approach an unlicensed crypto company on their own initiative rather than through marketing. Binance has interpreted this to mean it can onboard new customers who independently seek out the platform.
Some EU-based customer trading has meanwhile been routed through a Binance entity in Abu Dhabi, which operates under a different regulatory framework. Binance said it follows regulations in the jurisdictions where it operates and remains committed to doing business in the EU on a long-term, compliant basis.
Its prospects for a licence through Greece deteriorated in June as scrutiny increased, and Binance withdrew that Markets in Crypto-Assets application on June 16, a day before the Hellenic Capital Market Commission was due to consider it at a board meeting. Binance has yet to confirm which member state could handle its next application.
ESMA seeks confirmation of a proper wind-down
The European Securities and Markets Authority has contacted Binance seeking confirmation that the company is appropriately winding down its EU business. The authority declined to discuss an individual company and said national regulators are responsible for imposing sanctions over non-compliance.
Restrictions have still applied unevenly across markets. Binance users in France lost trading access after the deadline, though withdrawals remained available. Separately, the Binance app disappeared from Google Play in some EU countries in late July.
Binance's global trading position has held steady
Despite the EU setbacks, Kaiko data showed Binance still accounted for more than 45% of global spot trading volume in late August. Its share of euro-denominated spot trading stood between 3% and 4%, largely unchanged from levels before the July 1 deadline.
Licensed competitors, including Coinbase, can now use MiCA passporting rights to offer covered services across EU member states, while Binance continues searching for another licensing route.
Source: crypto.news
Trading involves risk.
Risk Disclaimer
