Binance Faces EU Scrutiny Over Reverse Solicitation Exemption

Regulators in Europe are questioning Binance's use of an exemption to continue serving European customers after failing to obtain a MiCA license. The exemption, known as reverse solicitation, allows non-EU firms to serve EU clients who initiated contact themselves.

Binance was previously ordered to wind down its operations in the EU but has continued to operate due to this exemption. ESMA and national regulators in France, Germany, and Greece are examining Binance's reliance on this exemption.

Some regulators have requested information from Binance, and enforcement action, including fines, is possible if they are not satisfied with how the exchange justifies serving EU customers under reverse solicitation.