European Regulators Investigate Binance’s Licensing Practices
- The European Securities and Markets Authority (ESMA) is examining Binance’s use of reverse solicitation under the Markets in Crypto-Assets Regulation (MiCA).
- Binance withdrew its MiCA application in Greece in June and is seeking authorization in another EU member state.
- As of September, ESMA’s register of non-compliant crypto providers increased from 164 to 173 entries, but Binance is not listed.
- ESMA has called for stronger enforcement powers over non-EU firms soliciting European investors without MiCA authorization.
- Some EU customers are being serviced through Binance’s Abu Dhabi-regulated entity as part of their compliance strategy.
Regulators are focusing on how Binance utilizes reverse solicitation to serve EU customers without proper authorization, which raises concerns about compliance with MiCA regulations. The scrutiny comes as ESMA seeks to enhance its oversight capabilities over non-compliant entities operating within the EU.
With the increase in non-compliant entries, the regulatory landscape for Binance continues to evolve, highlighting the importance of adhering to MiCA requirements for all crypto service providers in Europe.
