European regulators, including ESMA and national authorities in France, Germany and Greece, are examining how Binance continues to serve its customers in the European Union months after failing to secure a license under the MiCA regulation. The exchange was supposed to begin winding down its EU operations from July 1, the deadline set by the Markets in Crypto Assets regime. Regulators are questioning Binance’s reliance on reverse solicitation, the exemption under Article 61 of MiCA that ESMA guidelines define as narrowly framed and not to be used to circumvent MiCA requirements. Sanctions, including fines, could be imposed if the exchange’s explanations are deemed unsatisfactory. Binance withdrew its MiCA application in Greece in June and now serves European customers through its entity regulated in Abu Dhabi.
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