Regulators question the exemption

European authorities are examining Binance’s reliance on reverse solicitation to serve customers in the bloc, according to an October 1 Financial Times report cited by Reuters.

The reporting describes scrutiny of the exchange after it failed to secure authorisation under the Markets in Crypto-Assets framework. It does not establish a final enforcement finding in this latest inquiry.

What reverse solicitation means

The exemption concerns services sought entirely on a customer’s own initiative from a firm outside the EU. It is a narrow exception, rather than a general substitute for authorisation.

ESMA told the Financial Times that the provision should not be used to circumvent MiCA. The practical question is whether the circumstances of a customer relationship meet that standard, rather than simply whether a platform labels them reverse solicitation.

Binance says it is pursuing authorisation

Binance told Reuters that it complies with applicable regulatory requirements and is working toward MiCA authorisation. Reporting by Decrypt also noted that its Greek application had been withdrawn in June, following reports that the regulator was preparing to reject it.

That sequence makes “failure to secure authorisation” more precise than implying that the latest October report itself announced a new licence rejection. The current news is about continued service and the basis on which it is being provided.

An inquiry is not a final ruling

The Financial Times reported information requests from national regulators and the possibility of enforcement if explanations prove unsatisfactory. Potential action should not be confused with a penalty already imposed.

For the wider market, the case tests how tightly the boundary around a licensing exemption will be applied. A common regulatory framework depends not only on the written requirements but also on consistent decisions about the limited circumstances in which an exception is available.