Binance Under EU Review Over Exemption Claim

Binance is under review by EU regulators over its continued operations after failing to secure a MiCA license. The exchange had claimed it qualified for the 'reverse solicitation' exemption, but enforcement action is possible if they reject this interpretation.

According to the Financial Times, ESMA and regulators in France, Germany, and Greece are examining whether Binance meets the requirements for this exemption. The platform was ordered to wind down its EU business after it failed to secure a license this summer, but it has continued to serve some customers under this exemption.

The European Central Bank President Christine Lagarde had personally asked Greek Prime Minister Kyriakos Mitsotakis to block Binance's application in Greece. The application had cleared its technical review and was awaiting the mandatory 40-day assessment period without objections, but it was ultimately withdrawn after Lagarde's intervention.

ESMA has also proposed increasing enforcement powers for European regulators, including authority to freeze assets linked to crime. They are calling for more stringent measures to combat money laundering and sanctions violations in the crypto space.