Binance Faces EU Scrutiny Over Crypto Services Without MiCA License

Binance is facing scrutiny from European regulators over its continued provision of cryptocurrency services in the EU without obtaining authorization under the MiCA regulation. The exchange relies on a limited exemption known as 'reverse solicitation,' which permits companies to provide services when customers approach them entirely on their own initiative.

Regulators, including ESMA and those in France, Germany, and Greece, are examining whether Binance's use of reverse solicitation fits within the exemption's narrow boundaries. If found not to comply, enforcement measures could follow, potentially including financial penalties.

Binance had previously sought MiCA authorization in Greece but withdrew its application before the end of the regulatory transition period. The company said it intended to pursue authorization through another EU member state.