EU questions Binance over continued EU operations

• EU regulators are questioning Binance over its use of reverse solicitation in Europe.
• Binance failed to secure MiCA authorisation and faced a July wind-down requirement.
• Regulators could pursue enforcement if Binance’s explanation does not satisfy them.

EU officials are questioning Binance over its continued EU operations despite a wind-down order, according to a report by the Financial Times.

The scrutiny centres on reverse solicitation, an exemption allowing overseas firms to serve customers who approach them independently.

European Securities and Markets Authority officials have stressed that reverse solicitation remains narrowly defined under MiCA.

Regulators in France, Germany and Greece are also examining Binance’s use of the exemption.

Binance said it complies with applicable regulations and continues working towards MiCA authorisation in Europe.

The exchange previously withdrew its Greek MiCA application and said it would seek authorisation elsewhere.

Binance also said it would continue operating within applicable European laws while pursuing a long-term regulatory path.

The investigation could lead to enforcement action, including fines, if regulators reject Binance’s explanation.