EU regulators are investigating Binance’s use of a MiCA exemption to serve customers without a license, the Financial Times reported. ESMA said Binance continued to allow new accounts in some European markets after withdrawing its license application through Greece. Regulators have requested information and warned that failure to comply could lead to enforcement, including fines.
The “reverse solicitation” exemption allows an overseas firm to serve EU customers without a license only when customers initiate contact without prior advertising or promotion by the firm. Binance has said it complies with applicable rules and is working toward MiCA authorization. In France, where it failed to obtain a license, users can only withdraw their crypto assets.
