European market supervisors are examining whether Binance is still providing crypto-asset services to customers in the European Union without the authorization required under the Markets in Crypto-Assets Regulation, widely known as MiCA. The European Securities and Markets Authority, together with national authorities in France, Germany and Greece, is scrutinizing the exchange’s reliance on the “reverse solicitation” exemption, according to reporting by the Financial Times.
From 1 July 2026, firms offering crypto services in the EU were expected to hold a MiCA licence or begin winding down. Binance, the world’s largest crypto exchange, did not obtain authorization by that deadline. It withdrew an application in Greece in late June, and earlier national permissions in France, Spain and Poland lapsed as the single European framework took over. Customers in several member states were told how to withdraw funds, and new activity was restricted where the firm no longer had a local footing.
Reverse solicitation is the narrow route the exchange is said to be using where it no longer holds a local licence. Under that carve-out, a company based outside the EU may deal with a European customer only if the customer approaches the firm entirely on their own initiative, without any solicitation. ESMA has reportedly stressed that the exception should be interpreted very narrowly and must not be used to circumvent MiCA. Supervisors are now testing whether Binance’s arrangements meet that standard.
Some authorities have asked Binance for information. If the answers are judged insufficient, enforcement could follow, including fines. The review is not confined to Binance; people familiar with the matter say smaller firms are also being examined over the same exemption. The Dutch markets watchdog has separately warned that providers cannot simply assert that customers came to them first. ESMA declined to comment when approached by Reuters about the FT report, while French, German and Greek authorities have not publicly commented.
Binance says it complies with the rules in the jurisdictions where it operates and that it is still working toward MiCA authorisation. After pulling its Greek application, the exchange signalled an intention to seek approval through another member state, with France often mentioned as a possible route. However, any such licence would arrive after the July cut-off, leaving a gap in which only limited, client-initiated servicing is arguably available.
The case has wider significance because MiCA has no broad third-country equivalence regime. A non-EU firm either obtains authorization inside the bloc or stays outside its scope. ESMA guidance treats promotion aimed at EU users, including websites, apps, social media, sponsorships and influencer activity, as solicitation that can defeat the exemption. Applied to a global brand with a large existing European user base, the line between passive availability and active solicitation is hard to draw.
Separately, Bitpanda co-chief executive Christian Trummer said European crypto users are showing greater confidence in MiCA-regulated platforms. He argued that most people now place more faith in licensed providers and prefer authorized intermediaries over self-custody. Trummer also pressed for tighter enforcement, saying it remains uneven and that noncompliant firms continue to serve European clients without the required licence, putting compliant businesses at a competitive disadvantage.
