EU regulators review Binance continued service after failing to obtain a MiCA licence for EU customers

AT A GLANCE

Regulators in several EU jurisdictions are reviewing Binance use of the "reverse solicitation" exemption to continue serving EU customers.

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EU questions Binance continued operations after being required to exit the business

BlockBeats reports that October 1, according to the Financial Times,Binance failed to obtain an EU MiCA licence this summer but continues to serve EU customers under the legal "reverse solicitation" exemption. The European Securities and Markets Authority (ESMA) and regulators in France, Germany, Greece and other countries are reviewing its use of the exemption, and some regulators have already requested that Binance provide information.

Under EU rules, unlicensed crypto companies must immediately begin winding down their EU business from July 1 and stop providing services other than assistance with transferring or selling customers' holdings. "Reverse solicitation" allows companies based outside the EU to provide services when customers have approached them entirely on their own initiative, but ESMA stresses that the exemption has a very narrow scope and may not be used to circumvent MiCA requirements. People familiar with the matter said that if Binance's response fails to satisfy regulators, the authorities may take enforcement action, including fines.Binance said that it complies with applicable regulatory requirements in the jurisdictions where it operates and continuously reviews and adjusts its products and services to meet the relevant obligations. The company said it is actively seeking MiCA authorisation, viewing it as an important step toward providing European users with unified, regulated and reliable services.

Original link https://m.theblockbeats.info/flash/369871

Key points

According to the Financial Times,Binance failed to obtain an EU MiCA licence.
The report said that Binance continues to serve EU customers under the legal "reverse solicitation" exemption.
ESMA and regulators in France, Germany, Greece and other countries are reviewing Binance use of the exemption.
Some regulators have already requested that Binance provide information.
Binance said that it complies with applicable regulatory requirements in the jurisdictions where it operates and is actively seeking MiCA authorisation.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Crypto companies without a MiCA licence are required under EU rules to begin winding down the relevant business, retaining only services such as assisting customers with transferring or selling their holdings. The "reverse solicitation" exception applies only when customers have entirely on their own initiative sought services from a company outside the EU. Regulators are currently determining whether Binance has used this exception appropriately.

Why it matters to readers

If regulators do not accept Binance's interpretation of the exemption,Binance it could face enforcement action, including fines, and the future of its services for EU customers is uncertain.

EU users should watch for Binance changes to services and arrangements for transferring or selling holdings; the original report did not disclose any formal penalties at this time.

Risks and unknowns

Regulators have not yet published their review conclusions.
Binance Whether it meets the conditions for the "reverse solicitation" exemption has not yet been confirmed.
It remains uncertain whether fines or other enforcement measures will follow.
Binance Whether it can obtain MiCA authorisation and the specific timing have not been disclosed.

EU regulators review Binance continued service after failing to obtain a MiCA licence for EU customers

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