Binance Continues Operating in the EU Without a License

The crypto market was told in June that Binance could be forced out of the European Union. Months later, the world’s largest cryptocurrency exchange is still operating across Europe without the license it had sought.

The issue began with the EU’s Markets in Crypto-Assets framework, or MiCA, which introduced a common regulatory system for crypto companies and set July 1 as the deadline for obtaining licenses. After contacting several countries, Binance chose Greece for its application, which would have allowed it to access the entire European market.

According to Bloomberg, European Central Bank President Christine Lagarde personally intervened to ensure that the application would not be approved. Binance withdrew it on June 16, one day before the Greek capital-market regulator was due to discuss it, so the board never reached a decision.

The European Securities and Markets Authority, which oversees MiCA’s implementation across the EU, recently wrote to Binance seeking confirmation that it would close its regional operations. Company sources told Bloomberg, however, that several important factors encouraged Binance to retain its European customers. The licensing issue, they said, had become an obstacle rather than an outright block.

One route rests on a provision allowing unlicensed crypto companies to serve customers who approach them on their own, rather than through advertising campaigns. Binance interprets this “reverse solicitation” clause as permitting it to attract new customers across Europe. The company also processes transactions for some EU-based customers through an Abu Dhabi entity operating under a different governance structure.

In a statement, Binance said it complies with regulations in every jurisdiction where it operates. It also said it remains committed to operating in the EU on a “long-term, compliant basis,” either under MiCA or through another route.

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long-term, compliant basis