EU Regulators Scrutinize Binance Over Use of Reverse Solicitation Exemption

EU regulators are investigating whether Binance is utilizing the "reverse solicitation" exemption under the Markets in Crypto-Assets (MiCA) regulation to continue serving European users without a formal license. While the exemption allows firms to provide services if users initiate contact independently, regulators argue it should be interpreted narrowly. Binance maintains that it complies with all applicable regulatory requirements and is actively pursuing MiCA authorization through its Abu Dhabi entity. This scrutiny follows reports that ESMA has requested stronger powers from the European Commission to oversee non-EU firms targeting European investors.