Binance Faces EU Scrutiny Over Reverse Solicitation and MiCA Licence

EU regulators are scrutinizing Binance's operations in Europe after its failure to secure a MiCA licence. The exchange faces questions over its use of reverse solicitation, which permits companies to serve customers who independently request their services. EU rules restrict the exemption and require firms to use it only in narrow circumstances.

The review focuses on whether Binance's current arrangements comply with EU requirements. Regulators have reportedly examined Binance's use of the exemption and requested information from the exchange as they assess its European activities.

Binance previously held local licences in several European countries, including France, Spain, and Poland. Those licences have lapsed under the transition to the unified MiCA regulatory framework. The company now uses an Abu Dhabi-regulated entity for some customers outside countries where it previously held licences.