EU Regulators Reportedly Examine Binance’s Use of MiCA Reverse Solicitation Exemption

European regulators are reportedly looking into how Binance keeps serving some EU customers without MiCA authorization. The Financial Times reported that ESMA and regulators in France, Germany and Greece are examining its reliance on reverse solicitation, citing a person familiar with the matter. Binance withdrew its Greek MiCA application in June and said it would apply in another member state. It says it is still pursuing authorization and is committed to operating in Europe on a compliant, long-term basis.

What Reverse Solicitation Means

The exemption lets non-EU crypto service providers serve customers who approach them entirely on their own initiative. ESMA’s guidelines stress that firms cannot use it to get around MiCA rules. Some EU traders are now served through Binance’s Abu Dhabi-regulated entity, the report said. Binance did not confirm talks with regulators and said it “complies with applicable regulatory requirements.”

ESMA Seeks Stronger Enforcement Powers

On Wednesday, ESMA asked for stronger powers over non-EU firms that solicit European investors without authorization, in its response to the European Commission’s MiCA review. It says this would allow faster, more consistent action and limit regulatory arbitrage. ESMA Chair Verena Ross said Monday that the focus has moved from rulemaking to supervision and convergence.

ESMA Non-Compliant Crypto Register

The register grew from 164 entries on July 16 to 173 on Sept. 30. Binance is not listed, though MiCA calls the register non-exhaustive. Germany’s BaFin declined to comment, citing confidentiality, and ESMA and the French and Greek regulators had not responded.