Binance’s EU Access Comes Under Pressure as Regulators…
By Tobi Opeyemi Amure
AI summary of the source article
Regulators across France, Germany, and Greece, alongside the European Securities and Markets Authority, are investigating Binance's reliance on reverse solicitation to continue offering crypto services in the European Union. Under MiCA rules, reverse solicitation permits outside firms to serve EU customers who initiate contact independently, but regulators warn it cannot replace proper authorization. Binance withdrew its Greek MiCA application shortly before the July 1 transition deadline, leaving it without a bloc-wide licence. Consequently, Binance restricted services in several markets including France, Italy, Poland, and Spain, and now reportedly routes unlicensed EU users through its Abu Dhabi-regulated entity while working toward MiCA approval.
Why it matters
The review could determine whether Binance is permitted to continue serving European Union customers without a MiCA licence via reverse solicitation exemptions.
Key facts
- Regulators in France, Germany, Greece, and ESMA are reviewing Binance's reliance on reverse solicitation under MiCA.
- Binance withdrew its Greek MiCA licence application shortly before the July 1 deadline, leaving it without a MiCA licence.
- EU customers in markets where Binance lacks local authorization are receiving services through its Abu Dhabi-regulated entity.