Grab EXTRA 10% OFF all Tangem products. Till Oct 25Binance faces EU scrutiny over MiCA exemption
6.7 Regulation EU regulators are investigating Binance for serving EU clients post-MiCA deadline, focusing on its use of the reverse solicitation exemption. Fines and other enforcement actions may result.
Binance is facing increased scrutiny from European regulators for continuing to serve customers in the European Union without securing a license under the new Markets in Crypto-Assets (MiCA) regulations. The exchange was expected to wind down its EU operations from July 1, but authorities are now investigating Binance’s reliance on the “reverse solicitation” exemption. This exemption allows firms outside the EU to serve customers who independently approach them, but its use is strictly limited. The European Securities and Markets Authority (ESMA), along with regulators in France, Germany, and Greece, have requested detailed information from Binance to assess whether it is complying with EU law. Reports suggest that Binance continued onboarding EU clients after the MiCA deadline, with tests confirming that new accounts could still be opened and funded from several EU countries. Regulators have emphasized that the reverse solicitation exemption is narrowly defined and should not be used to circumvent MiCA requirements. If Binance’s interpretation is found to be in violation, enforcement actions such as fines may follow.
