Binance Faces Scrutiny Over EU Customer Service Without MiCA License
Binance is facing scrutiny from European regulators over its use of a MiCA exemption to continue serving some EU customers after entering July without authorization to operate across the bloc. The exchange has been accused of misusing 'reverse solicitation' provisions, which permit an overseas company to serve EU customers when those users approach the company entirely on their own initiative.
According to a Financial Times report, European regulators are examining whether Binance properly used reverse solicitation to continue serving some customers after entering July without MiCA authorization. The exemption is narrowly framed and should not be used to circumvent MiCA requirements, ESMA told the newspaper.
Some regulators have requested information from Binance and could impose fines if they are not satisfied with the exchange's response. Binance said it is working toward MiCA authorization and complies with applicable regulatory requirements where it operates.