European regulators are investigating Binance over its continued operations within the European Union. Authorities suspect the exchange is utilizing the reverse solicitation exemption under the MiCA framework to provide services to regional users without holding a formal license.
The reverse solicitation rule allows firms to serve customers who initiate contact independently, provided the company does not actively market its services in the region. Reports suggest Binance is currently leveraging this provision through its entity based in Abu Dhabi to maintain access for certain European clients.
Binance maintains that it adheres to all applicable regulatory requirements and is actively working toward obtaining full MiCA authorization. The exchange has not provided a specific timeline for when it expects to secure the necessary licensing to operate fully within the EU.
The company has faced previous regulatory hurdles in Europe, including the withdrawal of its license application in Greece on June 24. Additionally, on September 30, the European Securities and Markets Authority requested that the European Commission grant it broader oversight powers regarding non-EU firms targeting European investors.
