EU Regulators Scrutinize Binance Over Reverse Solicitation Exemption Under MiCA
European authorities are examining whether Binance is relying on regulatory exemptions to continue serving regional users without a local licence.
European Union regulators are examining whether Binance is using the reverse solicitation exemption under the Markets in Crypto-Assets (MiCA) framework to provide services to European clients, according to a Financial Times report. The provision permits unlicenced platforms to serve EU residents only if the customer initiates contact without prior marketing or solicitation. The report indicates the exchange has been serving certain EU customers through its entity based in Abu Dhabi.
In response, a Binance spokesperson stated that the exchange complies with all applicable regulations in its operating jurisdictions and is actively pursuing MiCA authorisation. The company has not indicated when it expects to receive approval, and regulatory bodies have not issued a formal ruling regarding the matter.
The scrutiny follows Binance's withdrawal of its Greek licence application on June 24 prior to a regulatory decision, amid unconfirmed reports of European Central Bank involvement that Greek authorities subsequently denied. Separately, the European Securities and Markets Authority (ESMA) requested expanded authority on September 30 from the European Commission to oversee non-EU firms engaging with European investors.
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