Binance faces EU scrutiny over MiCA exemption

European regulators are examining whether Binance is relying on a legal exemption to continue serving customers in the European Union without full authorization under MiCA, according to a report published on Oct. 1. The European Securities and Markets Authority, along with regulators in France, Germany and Greece, is reportedly reviewing Binance’s use of reverse solicitation. The exemption can allow nonEU crypto firms to serve customers who contact them on their own initiative, but ESMA says it should not be used to avoid MiCA requirements. Binance has said it is still working toward MiCA authorization and remains focused on longterm compliance in Europe. The company previously withdrew its Greek application and said it would seek approval in another EU member state. ESMA has also called for stronger enforcement powers over nonEU firms that solicit European investors without authorization.