Regulators Allege Binance Uses Legal Loopholes to Serve EU Users
Binance says it complies with EU rules as regulators examine how the exchange keeps serving European customers without a local license.
Regulators claim Binance is relying on legal loopholes to maintain its presence in Europe, according to a report by BeInCrypto. Authorities are said to be examining how the exchange can continue serving European users without holding a license in the region.
Binance disputed the characterization, telling BeInCrypto that it complies with EU rules. The company's response was a general statement of compliance rather than a point-by-point rebuttal of the regulators' position.
What the report leaves open
- The specific regulators involved are not named in the source material
- No countries, dates or enforcement timelines are specified
- The mechanism by which Binance is alleged to serve EU users without a license is not detailed
- Binance's full statement has not been published in the report
The claims land against the backdrop of the European Union's Markets in Crypto-Assets framework, which established a bloc-wide licensing regime for crypto firms. Transitional arrangements in the rules have allowed some companies to keep serving customers in certain member states while their authorization applications are processed, a setup that has drawn supervisory attention.
How regulators pursue the matter, and whether it leads to formal action, is not yet clear from the available reporting.