ESMA and regulators in France, Germany, and Greece are examining how Binance applies the reverse solicitation exemption to provide services in the EU. From July 1, companies without a MiCA license are required to wind down their operations.

Regulators request information from the exchange

Some supervisory authorities have already requested additional information from Binance. The aim is to verify whether clients are approaching the platform on their own initiative and to ensure the exemption is not being used to circumvent MiCA requirements. Violations could result in fines.

Reverse solicitation allows service to self-initiated clients

The exemption permits servicing a client without a license if the client independently seeks out the service and was not attracted by advertising. Binance continues to offer some services to European clients, citing this mechanism.

From July 1, business without a MiCA license winds down in the EU

From July 1, crypto companies without a MiCA license were required to begin winding down their activities in the European Union. Against this backdrop, regulators are reviewing Binance's use of the reverse solicitation exemption.