Binance Accused of Using Legal Loopholes to Serve EU Users Without License
Regulators are questioning how Binance keeps serving European customers without a local license, while the exchange says it follows EU rules.
European regulators are examining how Binance continues to serve customers in the region without holding a local license, according to a report by BeInCrypto. The claims focus on whether the exchange relies on legal loopholes to maintain access to European users.
Binance disputed the characterization, telling BeInCrypto that it complies with European Union rules. The exchange has previously maintained that its operations in the bloc are structured to meet applicable requirements.
The dispute
- Regulators allege the exchange uses legal workarounds to keep serving European users despite lacking a local license.
- Binance says its activities are compliant with EU rules.
- The report does not identify which regulators are involved or specify the jurisdictions under examination.
The scrutiny comes as the European Union phases in a bloc-wide licensing regime for crypto-asset service providers, pushing exchanges to secure authorization in individual member states. How global platforms adapt their structures to that framework has become a recurring point of tension between exchanges and national supervisors.