Binance Continues EU Operations After Missing MiCA Deadline

Binance continues to operate in the European Union despite missing the EU's MiCA licensing deadline on July 1, 2026. The exchange initially told users it would shut down its services across the bloc but instead used a loophole called reverse solicitation to continue operating.

This exemption allows an unlicensed firm to provide services to an existing customer who contacts them directly, rather than through marketing or advertising. Binance has been routing some EU trades through a subsidiary in Abu Dhabi, which operates under the UAE's separate regulatory framework.

The European Securities and Markets Authority (ESMA) has questioned whether this arrangement amounts to genuine compliance or a workaround, and is monitoring Binance's claims that it is winding down its EU business. The regulator has also flagged anti-money-laundering gaps at Binance, which is now pursuing a MiCA license through France's AMF.

Binance still controls over 45% of global spot trading volume, despite lacking MiCA authorization. The exchange has said it follows the regulations of every jurisdiction where it operates and remains committed to doing business in the EU on a 'long-term, compliant basis'.