Binance Exploits Loophole to Keep Serving EU Customers

Binance has found ways to continue serving some European Union customers despite missing the July 1 MiCA licensing deadline. The exchange relied on 'reverse solicitation' provisions, which permit certain services when customers approach an unlicensed crypto company on their own initiative instead of being targeted through marketing.

According to a Bloomberg report, Binance has been using this provision to onboard new customers who independently seek out the platform. Trading for some EU-based customers has also been routed through a Binance entity in Abu Dhabi, where the business operates under a different regulatory framework.

The arrangements have allowed Binance to maintain part of its European business while pursuing MiCA authorization. Binance stated that it follows regulations in jurisdictions where it operates and remains committed to doing business in the EU on a 'long-term, compliant basis.'

Despite missing the deadline, Binance still controlled more than 45% of global spot trading volume in late August, with its euro trading share remaining largely unchanged from before the MiCA deadline.