Report: Binance Under EU Review Over Continued Operations After MiCA Miss

The review centers on whether Binance can rely on reverse solicitation while its broader European licensing position remains unresolved. EU regulators are reportedly questioning Binance over its use of a legal exemption to keep serving some European customers after the exchange failed to win a MiCA license. Enforcement action is possible if they reject its interpretation of the rule. Regulators Weigh the Reverse Solicitation Exemption The Financial Times, citing people familiar with the matter, reported that the European Securities and Markets Authority (ESMA) and regulators in France, Germany and Greece are reviewing whether Binance qualifies for MiCA’s “reverse solicitation” exemption. The platform was ordered to wind down its EU business after it failed to secure a license this summer. Under the rules, unlicensed firms were supposed to take “immediate steps” to wind down from July 1 and stop serving customers, other than to help them transfer or sell their holdings. In June, Binance had said that it had worked with regulators for about 18 months and had received no formal sign of rejection. But it later withdrew an application in Greece and stated it would pursue authorization i...