Multiple European Regulators Review Binance's Use of MiCA Exemption to Serve EU Clients

Odaily News: The European Securities and Markets Authority (ESMA) and regulators in France, Germany, and Greece are reviewing Binance's practice of using the reverse solicitation exemption under the Markets in Crypto-Assets Regulation (MiCA) to provide services to certain EU clients without authorization. The exemption applies only when clients approach a non-EU crypto asset service provider entirely on their own initiative.

Binance withdrew its MiCA authorization application in Greece in June and stated it would apply for authorization in another EU member state. ESMA recently called for strengthened enforcement powers against non-EU companies that solicit European investors without MiCA authorization, in order to enhance consistency in EU regulatory actions. (Cointelegraph)