EU Regulators Scrutinize Binance Over Reverse Solicitation Practices

European Union regulators, including the European Securities and Markets Authority (ESMA), are investigating Binance for its use of the "reverse solicitation" exemption to serve European clients without a local license. Following the July 1, 2026, deadline for the Markets in Crypto-Assets (MiCA) regulation, firms without authorization were required to cease operations and limit services to assisting users with asset transfers. Regulators, including the Dutch AFM, emphasized that reverse solicitation should be a narrow exception rather than a means to bypass MiCA requirements. Binance, which currently serves European clients through its Abu Dhabi entity, declined to comment on the investigation but stated it complies with applicable regulatory requirements.