Binance Outsmarts EU Regulators with Reverse Solicitation Trick

Binance, the world's largest digital-asset exchange, has found ways to continue operating in the European Union (EU) despite not having a license under the EU's Markets in Crypto-Assets framework, or MiCA. The company withdrew its Greek application for authorization in mid-June but never fully departed from the market.

Binance has relied on reverse solicitation to onboard new customers across the region. This provision permits unlicensed crypto firms to accept clients who approach them independently, rather than through marketing campaigns or other outreach. The exchange claims that this lets it sign up users who seek out its platform voluntarily.

The company has also routed some EU-based trading through a Binance entity in Abu Dhabi, which operates under a different regulatory framework. This arrangement allows the company to process transactions for European clients through a jurisdiction where its licensing status is not as restrictive.