EU Regulators Probe Binance Over 'Reverse Solicitation' Practices

The European Securities and Markets Authority (ESMA) and national regulators in France, Germany, and Greece are investigating how Binance continues to serve EU customers. The probe focuses on the use of the 'reverse solicitation' exemption, which allows non-EU firms to serve clients only when the client initiates the contact. Following its failure to secure a license under the MiCA regime, Binance is under pressure to prove it is not circumventing regulations. Regulators have requested information from the exchange and may pursue enforcement actions, including fines, if they find the firm's reliance on the exemption unjustified.