Binance Faces Scrutiny Over Reverse Solicitation Exemption

Regulators in Europe are scrutinizing Binance's use of a legal exemption to continue serving customers in the European Union without authorization under the bloc's crypto rules. The exemption, known as reverse solicitation, allows non-EU companies to serve EU customers who approach them on their own initiative.

Binance withdrew its Greek MiCA application in June and said it would seek authorization in another EU member state. However, the company is currently relying on reverse solicitation to continue serving some EU customers.

ESMA's guidelines stress that companies cannot use reverse solicitation to circumvent MiCA requirements. Binance told Cointelegraph that it continues pursuing MiCA authorization and remains committed to operating in Europe on a long-term compliant basis.