Binance Reverse Solicitation Under EU Regulatory Scrutiny

European regulators are scrutinizing Binance's use of 'reverse solicitation' to serve European Union (EU) customers, raising concerns about compliance with the bloc's Markets in Crypto-Assets Regulation (MiCA).

The Financial Times reported that ESMA and national watchdogs in countries including France, Germany, and Greece are examining whether Binance's reliance on reverse solicitation is within the intended scope of MiCA.

Reverse solicitation allows non-EU crypto asset service providers (CASPs) to serve EU customers when they initiate contact entirely on their own. However, ESMA guidelines emphasize that this exemption cannot be used to bypass MiCA authorization obligations.

Binance withdrew its MiCA application for Greece in June and has since pursued authorization through another EU member state. The exchange told Cointelegraph that it complies with applicable regulatory requirements.