The European Securities and Markets Authority (ESMA) and national regulators in France, Germany and Greece are examining Binance's use of the reverse solicitation exemption to continue serving European Union customers under the bloc's Markets in Crypto-Assets Regulation (MiCA), the Financial Times reported on Thursday.

Reverse solicitation allows non-EU crypto asset service providers (CASPs) to serve customers who approach them entirely on their own initiative. ESMA's guidelines make clear that firms cannot use the exemption to circumvent MiCA authorization requirements.

What is Binance's licensing status in the EU?

Binance withdrew its Greek MiCA application in June, saying it would seek authorization in another member state. The company told Cointelegraph on Sept. 18 that it continues pursuing MiCA authorization and remains committed to operating in Europe "on a long-term compliant basis."

Binance did not confirm whether it was in talks with EU regulators. A spokesperson told Cointelegraph that the exchange "complies with applicable regulatory requirements."

With MiCA's transitional period ending July 1, Binance told Cointelegraph that EU access would depend partly on a user's jurisdiction, account status and "servicing entity." Some EU traders are now being served through Binance's Abu Dhabi-regulated entity, according to the FT.

Why is ESMA pushing for stronger enforcement?

On Wednesday, ESMA called for stronger powers over non-EU companies that solicit European investors without MiCA authorization. The proposal came in ESMA's response to the European Commission's consultation on reviewing the regulation.

The watchdog said its proposals would support faster, more consistent supervisory action across the EU and reduce opportunities for companies to exploit regulatory differences between member states. ESMA Chair Verena Ross said Monday that the regulator's MiCA focus had shifted "from rulemaking towards supervision and convergence."

The shift signals a new phase in EU crypto oversight. After two years of rulemaking under MiCA, ESMA is now prioritizing cross-border enforcement coordination, a development that raises the cost of regulatory arbitrage for non-EU firms targeting European retail.

Is Binance on ESMA's non-compliance list?

Binance does not appear on ESMA's latest register of non-compliant crypto providers, which MiCA describes as "non-exhaustive" and which ESMA updates based on information from national authorities and other sources.

The register grew from 164 entries on July 16 to 173 in its Sept. 30 update. Germany's Federal Financial Supervisory Authority (BaFin) declined to comment, citing legal confidentiality obligations. ESMA and the French and Greek watchdogs had not responded by publication.

The absence is notable because it leaves Binance in a gray zone: the company is not formally designated non-compliant, but its reliance on reverse solicitation is now the explicit subject of supervisory review.

What are the operational stakes?

For Binance, the immediate question is whether the reverse solicitation route survives intensified supervisory pressure. With Greek authorization off the table and the Abu Dhabi entity serving some EU clients, the exchange's European retail footprint faces structural uncertainty as national regulators coordinate through ESMA.

The Commission's review of MiCA, for which ESMA submitted its enforcement proposals on Wednesday, will determine whether the agency gains direct authority over non-EU firms operating into the bloc. The consultation timeline points to legislative follow-up within the next 12 months, setting the next deadline for Binance and other non-EU CASPs serving European customers.