European regulators (ESMA, French, German and Greek) are examining Binance’s use of the reverse solicitation exemption under MiCA, which allows a non-EU company to serve European clients who approached the platform on their own initiative. Binance failed to obtain a MiCA license before the June 30 deadline and withdrew its application in Greece on June 24. In France, the platform stopped accepting new clients on July 1, affecting approximately 2 million French users. Regulators are verifying whether Binance’s European clients truly approached the platform independently, as any prior advertising or solicitation would invalidate the exemption. No authority has concluded that an infraction has occurred to date, but enforcement measures could follow if Binance’s responses do not satisfy the regulators.
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