According to CoinMeta, and as reported by the Financial Times, EU regulators are examining whether Binance is abusing legal exemption clauses for reverse recruitment. Binance failed to obtain EU MiCA authorization this summer but continues to use this exemption to serve EU customers. The European Securities and Markets Authority, as well as regulatory authorities in France, Germany, Greece, and other countries, are reviewing Binance's use of this exemption, and some regulators have requested Binance to provide relevant information. Under EU rules, unlicensed crypto companies must cease their operations in the EU starting from July 1st. Binance stated that it will comply with the regulatory requirements of its operating location and is striving to obtain MiCA authorization.