Binance Under EU Scrutiny Over Reverse Solicitation Exemption
European regulators are scrutinizing Binance's use of MiCA's reverse solicitation exemption to continue serving some EU customers without a bloc-wide crypto license. The exemption allows third-country companies to provide crypto services in the EU if the customer initiates contact, but advertising or promoting services directly at EU customers removes this protection.
Binance has been using the exemption since it withdrew its Greek application in June and began restricting services as the EU transition period expired. ESMA and national authorities in France, Germany, and Greece are reviewing Binance's use of the exemption, with some regulators requesting information from the exchange.
The review comes as EU regulators move towards tighter supervision, including a broader MiCA framework covering DeFi access providers, staking, lending, and additional enforcement tools against unauthorized third-country firms. Enforcement action, including fines, could follow if authorities conclude that Binance did not meet the conditions for using the exemption.