European Regulators Scrutinize Binance’s Operations Post-MiCA License Failure
- The European Securities and Markets Authority (ESMA) and regulators in France, Germany, and Greece are investigating how Binance continues to serve EU customers without a MiCA license.
- Binance failed to secure a MiCA license this summer and was expected to wind down its EU operations from July 1, serving only existing customers to help them move or sell their holdings.
- Regulators are examining the exchange’s use of reverse solicitation under Article 61 of MiCA, which allows firms outside the EU to provide services at a client’s “own exclusive initiative.”
- Binance had registrations in six EU member states, including France and Italy, all of which have lapsed under MiCA.
- The exchange withdrew its MiCA application in Greece in June after the Hellenic Capital Market Commission was reportedly set to reject it.
European regulators are questioning Binance‘s continued service to EU users despite not securing a MiCA license by the July deadline. The scrutiny focuses on the firm’s reliance on reverse solicitation exemptions under Article 61 of MiCA regulations.
Failure to comply with regulatory demands could result in fines for Binance as authorities assess its adherence to the narrowly framed exemption guidelines set by ESMA and other national regulators.Source
