European regulators are examining whether Binance improperly relied on MiCA's narrow reverse-solicitation exemption to continue serving customers in the bloc without authorization. The European Securities and Markets Authority, along with regulators in France, Germany and Greece, is reviewing whether Binance qualifies for the exemption and could pursue enforcement if it rejects the exchange's interpretation. Firms without MiCA authorization were required from July 1 to take immediate steps to wind down EU operations and restrict services to helping customers transfer or sell their holdings. Reverse solicitation permits an overseas provider to serve an EU client only when that client independently approaches the firm, rather than being targeted through marketing. Binance failed to secure a MiCA license this summer and has used an Abu Dhabi-licensed entity to serve some European customers. Its licenses in France, Spain and Poland became invalid under MiCA. Binance said in June that it had worked with regulators for about 18 months without receiving a formal rejection. It later withdrew its Greek application and said it would seek authorization in another member state. The Wall Street Journal reported that European Central Bank President Christine Lagarde asked Greek Prime Minister Kyriakos Mitsotakis to block the application after it had cleared a technical review and its mandatory 40-day assessment period ended without objections. The report linked her concerns to Binance's earlier U.S. money-laundering and sanctions violations and to the potential growth of dollar-denominated stablecoins as the ECB develops a digital euro. ESMA has separately called for stronger powers under MiCA, including authority to order asset freezes where there are reasonable grounds to suspect criminal links, remove websites associated with scams or unauthorized firms, and act against non-EU companies that solicit European investors without authorization. It also proposed restrictions on misleading marketing, rules for third-party marketers and full cost disclosures. No regulator has announced a decision on Binance, and the exchange says it complies with applicable rules and is pursuing MiCA authorization.