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- European regulators are examining Binance’s use of a narrow reverse solicitation exemption to serve EU customers without bloc-wide MiCA authorization.
- Authorities in France, Germany, and Greece are reviewing the activity, and Binance is currently routing some European customer activity through an Abu Dhabi entity.
- Binance states it is still pursuing MiCA authorization elsewhere, while regulators have not yet announced any findings of a MiCA breach.
European regulators are examining Binance’s use of a narrow MiCA exemption to continue serving some EU customers after the exchange entered July without bloc-wide crypto authorization.
The scrutiny centers on “reverse solicitation,” which allows a non-EU company to provide crypto services when a customer approaches it entirely on their own initiative. Binance says it complies with applicable rules and is still pursuing MiCA authorization.
Regulators Test Binance’s Use Of Reverse Solicitation
The European Securities and Markets Authority and national regulators are examining whether Binance’s activity meets the conditions for reverse solicitation. Authorities in France, Germany, and Greece are among those looking at the issue, with some regulators requesting information from the exchange.
MiCA treats the exemption narrowly. A third-country company cannot rely on it when it has solicited, promoted or advertised services to customers in the EU. A customer independently requesting one service also does not give the provider unrestricted permission to market other crypto products later. No finding of a MiCA breach has been announced.
Binance Routes Some EU Activity Through Abu Dhabi Entity
Binance withdrew its MiCA application with Greece’s Hellenic Capital Market Commission on June 24 after the process failed to produce a formal decision before the transition deadline. The exchange said it would pursue authorization in another EU country.
Some European customer activity is reportedly being handled through Binance’s Abu Dhabi-regulated entity. That entity remains a third-country provider under EU rules, meaning any services offered without MiCA authorization must fit within an applicable exemption.
Binance Says Full MiCA Authorization Remains Its Long-Term Route
MiCA’s maximum transition period for previously registered providers ended by July 1, although some member states applied shorter periods and authorization or refusal could end the transition earlier.
Authorized crypto firms can obtain a license in one member state and passport covered services across the EU. Binance has not disclosed where it plans to submit its next MiCA application.
The exchange says it is actively working toward authorization and does not intend to rely on reverse solicitation as its long-term European operating model. For now, regulators are gathering information. The outcome will determine whether Binance can continue providing the services under review while it seeks full EU authorization.
