Binance Faces European Scrutiny Over MiCA Exemption Use
Binance, the world's largest crypto exchange, is facing scrutiny from European regulators over its services in the region.
The European Securities and Markets Authority (ESMA), along with regulators in France, Germany, and Greece, are reviewing Binance's use of MiCA's 'reverse solicitation' exemption to keep serving millions of EU users without a valid license.
Under MiCA rules, non-EU exchanges cannot offer services to EU users without a valid license. However, the reverse solicitation rule allows a non-EU crypto company to serve a customer when the customer contacts the company directly and asks for its services.
Regulators argue that Binance is using this rule as a loophole to keep serving its wider EU customer base without obtaining the required license. This comes after Binance's main license application in Greece was rejected earlier this year.