Binance Under EU Scrutiny for Reverse Solicitation Exemption

Binance's operations in the European Union are facing scrutiny from regulators due to its use of reverse solicitation, a legal exemption that allows non-EU crypto asset service providers (CASPs) to serve customers who approach them entirely on their own initiative.

The exemption is being questioned by European regulators as Binance continues to serve EU customers without MiCA authorization. The Markets in Crypto-Assets Regulation (MiCA) requires CASPs to obtain authorization before operating in the EU, but Binance has been relying on reverse solicitation to circumvent this requirement.

ESMA and regulators in France, Germany, and Greece are examining Binance's use of reverse solicitation under MiCA. Binance withdrew its Greek MiCA application in June and said it would seek authorization in another EU member state.