Binance Faces EU Scrutiny Over Reverse Solicitation Exemption

Binance is facing scrutiny from European regulators over its continued provision of cryptocurrency services in parts of the European Union after failing to secure a MiCA licence.

The review centres on Binance's reliance on the reverse solicitation exemption, which allows customers in the EU to approach crypto companies based outside the bloc on their own initiative.

Regulators in France, Germany, and Greece, alongside the European Securities and Markets Authority, are examining whether Binance's use of the exemption meets MiCA requirements after the July 1 deadline for unlicensed firms to wind down their EU operations.

Binance maintains that it complies with applicable regulatory requirements in the jurisdictions where it operates and reviews its products and services against relevant obligations, while the exchange has also said it is working toward obtaining MiCA authorization.