According to CoinMeta, and as reported by the Financial Times, Binance is facing scrutiny from European regulatory authorities for continuing to serve certain EU customers without obtaining the necessary MICA authorization. The European Securities and Markets Authority (ESMA) and national regulators are investigating whether Binance is properly complying with the "reverse solicitation" clause, which allows overseas companies to serve EU customers when customers take the initiative to contact them. If its explanations do not satisfy the regulators, it may face enforcement actions, including fines. Binance states that it is making active efforts to obtain the required MICA authorization and to comply with the applicable regulatory requirements of the jurisdiction in which it operates. ESMA points out that the reverse solicitation clause should be interpreted as a very narrow exception and should not be used to circumvent MICA requirements.