Binance Faces European Scrutiny Over MiCA Licence

Binance is facing scrutiny from European regulators over its continued provision of cryptocurrency services in parts of the EU 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. Regulators Examine Exemption Under MiCA allows an EU customer to independently seek services from a crypto company based outside the bloc, but regulators have warned that companies cannot use the provision as a broad alternative to obtaining authorization.

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