Binance Exploits EU Loophole to Serve European Customers

Binance, the world's largest crypto exchange, is facing scrutiny from EU regulators over its use of a legal loophole to continue serving some European customers. The issue revolves around the 'reverse solicitation' exemption in the Markets in Crypto-Assets (MiCA) regulation.

The MiCA rule prohibits exchanges from advertising or providing services in the EU without a license, but it allows for an exception if a user is not directly targeted by the exchange and instead finds out about it through personal means. Binance is using this loophole to serve some EU customers through its Abu Dhabi entity.

Binance's spokesperson confirmed that they are actively working towards becoming MiCA-authorised, stating 'Binance complies with applicable regulatory requirements in the jurisdictions in which it operates… We are actively working toward becoming MiCA-authorised.'