**[EU Questions Binance's Continued Operations After Being Asked to Exit Business]** BlockBeats News, October 1 — According to the *Financial Times*, Binance failed to obtain the EU MiCA license this summer but has continued serving EU customers by leveraging the "reverse solicitation" legal exemption. The European Securities and Markets Authority (ESMA), along with regulators from France, Germany, Greece, and other countries, is reviewing Binance's use of this exemption, with some regulators requesting additional information from the company. Under EU rules, unlicensed crypto companies were required to begin exiting EU operations as of July 1 and cease offering services other than assisting customers in transferring or selling their holdings. The "reverse solicitation" exemption allows companies outside the EU to provide services only when customers actively and voluntarily seek them out. However, ESMA emphasized that the scope of this exemption is extremely narrow and cannot be used to circumvent MiCA requirements. Sources familiar with the matter stated that if Binance's response fails to satisfy regulators, enforcement actions such as fines may be imposed. Binance has stated that it complies with applicable regulatory requirements in its operating jurisdictions and continuously reviews and adjusts its products and services to meet relevant obligations. The company also noted that it is actively pursuing MiCA authorization, viewing it as a critical step toward providing unified, regulated, and trustworthy services to European users. [Original Link]