Binance Faces EU Probe Over Alleged MiCA License Bypass

European regulators have launched an investigation into Binance's operations in the European Union. The exchange, which is the world's largest cryptocurrency exchange by trading volume, has been accused of improperly using a regulatory carve-out to continue serving customers across the EU without holding a MiCA license.

The scrutiny centers on Binance's continued availability to European users despite not having MiCA authorization, which became mandatory for crypto-asset service providers after the transition period ended. Authorities are demanding documents from Binance explaining the legal basis for its ongoing operations in the EU.

Binance had withdrawn its licensing application in Greece earlier this year after indications that regulators intended to reject it. The exchange has justified its continued service by citing provisions known as reverse solicitation, which permit non-EU entities to serve EU-based customers under narrow circumstances.