EU regulators scrutinize Binance over continued operations under MiCA exemption
European regulators are questioning Binance over its reliance on a reverse solicitation exemption to keep serving EU traders after the exchange failed to obtain a license under the Markets in Crypto-Assets framework.
The European Securities and Markets Authority alongside national regulators in France, Germany, and Greece are questioning Binance over its ongoing operations in the European Union, according to a Financial Times report. Officials are reviewing whether the exchange qualifies for MiCA's reverse solicitation exemption, which permits non-EU entities to serve European customers only when the client initiates the relationship completely unprompted. Under the MiCA framework, unlicensed crypto firms were expected to take immediate steps to wind down their EU operations starting July 1 and halt services to customers other than assisting them with selling or transferring their assets.[6][1][7][8][4]
Binance failed to secure a MiCA license, and its existing local registrations in France, Spain, and Poland subsequently lapsed. In member states where it lacked a domestic registration, Binance has continued to serve European users through an Abu Dhabi-regulated entity using the reverse solicitation exemption. ESMA has stated that reverse solicitation must be treated as a very narrowly framed exception and cannot be used to circumvent MiCA rules. Several watchdogs have requested information from the company, and regulators could take enforcement action, including fines, if Binance's explanations are found unsatisfactory.[6][5]
In response to the inquiry, Binance said it complies with applicable regulatory requirements in jurisdictions where it operates and added that it is actively working toward becoming MiCA-authorized. Other, smaller crypto companies are also reportedly under review as European regulators intensify scrutiny under the regime.[6][3]
Key facts
- ESMA and regulators in France, Germany, and Greece are questioning Binance over how it continues to serve EU customers without a MiCA license.
- The probe centers on Binance's reliance on reverse solicitation, which permits non-EU firms to serve clients only if the user reaches out unprompted.
- Under MiCA rules, unlicensed entities were expected to take immediate steps to wind down their EU businesses starting July 1.
- Binance's local licenses in France, Spain, and Poland lapsed under MiCA, and European traders outside those jurisdictions are served via an Abu Dhabi-regulated entity.
- Regulators have requested information from Binance and could take enforcement actions, including fines, if not satisfied.
- Binance stated that it complies with applicable regulations and is actively working toward obtaining MiCA authorization.
Sources · 8 sources
- BS
BSCN@BSCNewsPost on X ·
Binance Comes Under EU Scrutiny Over MiCA Exemption Binance is facing regulatory scrutiny over how it uses MiCA’s reverse solicitation exemption for European clients. ESMA and regulators in France, Germany and Greece are examining whether Binance meets the exemption’s requirements. The provision can allow non EU firms to serve clients when customers independently request their services. Regulators are questioning whether Binance’s current service model fits those conditions after its MiCA licensing setback. The Financial Times reported that the review could potentially lead to enforcement action if regulators find violations. Source: Financial Times
Open source - CO
CoinGape@CoinGapeMediaPost on X ·
🇪🇺 JUST IN: EU regulators are questioning @binance over its reliance on a legal “reverse solicitation” exemption to continue serving EU customers despite MiCA requirements to wind down services without a license, according to the Financial Times. https://t.co/CvklLkvtVK
Open source - TB
The Block@TheBlockCoPost on X ·
NEW: EU regulators are questioning Binance over its use of a legal exemption to continue serving customers in the bloc after failing to secure a MiCA license, according to the Financial Times. Binance said it "complies with applicable regulatory requirements in the jurisdictions in which it operates" and that it is working toward becoming MiCA-authorized.
Open source - RE
Reuters@ReutersPost on X ·
EU questions Binance over continued operations despite wind-down order, FT reports https://t.co/OFHQ4DdgsC https://t.co/OFHQ4DdgsC
Open source - DE
DecryptArticle ·
EU Presses Binance Over ‘Reverse Solicitation’ Exemption for Users: Report Regulators are probing how the exchange keeps serving EU customers from Abu Dhabi, months after it lost its MiCA registrations.
Open source - UN
UnchainedArticle ·
ESMA and National Regulators Scrutinize Binance’s Reliance on ‘Reverse Solicitation’ Exemption in the EU, FT Reports The European Securities and Markets Authority (ESMA) and national regulators in France, Germany and Greece are questioning Binance over how it continues to serve customers in the bloc, the Financial Times reported Thursday, citing people familiar with the matter. Their focus is “reverse solicitation,” an exemption that allows a non-EU company to serve European customers when the customer, entirely unprompted, initiates the relationship. Binance, the world’s largest crypto exchange, failed to secure a license this summer under the EU’s Markets in Crypto Assets (MiCA) regime. Under that regime, unlicensed firms were expected to take “immediate steps” to wind down their EU businesses from July 1 and stop serving customers except to help them transfer or sell their holdings. EU law says crypto firms should use the exemption only narrowly and attaches strict conditions even when it applies. ESMA said it should be treated as an exception, “very narrowly framed,” and not used to circumvent MiCA. The Dutch market watchdog, the AFM, added that service providers “cannot simply claim reverse solicitation.” Neither commented on Binance specifically, and the French, German and Greek regulators declined to comment, the FT reported. Some regulators have requested information from the exchange. If they are not satisfied with Binance’s response, they could take enforcement action, including fines, the FT quoted sources as saying. One of them reportedly said other, smaller companies are also under review. Binance held local licenses in several European countries, including France, Spain and Poland, that lapsed under MiCA. A user living in Austria and two people familiar with the matter told the FT that traders outside those countries are served by Binance’s Abu Dhabi-regulated entity. Binance became regulated in Abu Dhabi in December 2025. The Austrian user said nothing has changed for them. In EU countries where it had no local license, Binance operates under reverse solicitation, one of the people reportedly said. Binance reportedly told the FT it “complies with applicable regulatory requirements” where it operates and is “actively working toward becoming MiCA-authorised.” The scrutiny adds to a long list of regulatory troubles for the exchange, which was fined a record $4.3 billion in the US in 2023 and pleaded guilty to criminal charges tied to money laundering and sanctions violations. Related Listen: Crypto’s Clarity Act Collapses. Two Days Later, the SEC Introduces Its Innovation Exemption The post ESMA and National Regulators Scrutinize Binance’s Reliance on ‘Reverse Solicitation’ Exemption in the EU, FT Reports appeared first on Unchained .
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
FT: EU Regulators Scrutinize Binance’s Use of MiCA Exemption Binance, the world’s largest crypto exchange, is under scrutiny from EU regulators over its use of MiCA’s “reverse solicitation” exemption to continue serving some European customers after failing to secure a license, the Financial Times reported. ESMA and regulators in France, Germany and Greece are reviewing whether Binance qualifies for the exemption, with potential enforcement action if they reject its interpretation.
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🇪🇺 JUST IN: EU regulators are questioning Binance over its use of a legal exemption to keep serving EU customers despite an order to wind down after failing to secure a license, per FT. https://t.co/8pPs969QQz
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