Key facts
- Binance continues to operate in the EU despite failing to secure a required MiCA license by the July 1, 2026 deadline.
- Millions of European users remain on the platform, with new accounts reportedly being opened and verified in several EU countries.
- The exchange has halted new registrations and restricted services in some nations, but fund withdrawals remain possible.
- Enforcement of MiCA regulations is inconsistent across EU member states.
- Binance faces ongoing regulatory scrutiny related to past settlements and its founder's legal issues.
Binance, the world's largest cryptocurrency exchange, continues to conduct business in the European Union despite failing to obtain a necessary regulatory license under the Markets in Crypto-Assets (MiCA) Regulation by the July 1, 2026 deadline. This situation allows millions of European users to remain on the platform, utilizing various workarounds and side doors that circumvent the intended market lockout.
Following the missed deadline, Binance halted new registrations and restricted services for users in countries like France, Italy, Poland, and Spain. However, reports indicate that users can still withdraw funds, and testing by crypto analysis firm Sandmark revealed that new accounts could be opened and fully verified in several EU nations, including Austria, France, Germany, Spain, and Belgium, even without VPNs. Binance maintains that it has implemented measures to comply with applicable European legal frameworks, though it did not directly address the specific onboarding gaps identified.
The inconsistent enforcement of MiCA rules across the 27-member bloc is a significant factor. While the European Securities and Markets Authority (ESMA) maintains a registry of authorized providers, only a small fraction of national supervisory authorities have submitted entries. Germany's BaFin, for instance, is not on the list. This lack of unified enforcement allows companies like Binance, as well as MEXC and HTX, to continue operating without the required licenses.
Binance's difficulties in securing a license are compounded by ongoing regulatory scrutiny stemming from its $4.3 billion US settlement in 2023 and its founder Changpeng Zhao's guilty plea. Zhao has since resigned as CEO, but regulators reportedly continue to examine his influence. The Netherlands has already revoked Binance's operating license due to compliance failures. Despite these setbacks, Binance views Europe as strategically important and plans to reapply for licenses, with a French authorization anticipated in the coming months.