EU regulators press Binance over MiCA reverse solicitation exemption

What happened

European regulators are questioning how Binance continues to serve customers in the bloc months after it failed to secure a licence under MiCA. ESMA and national watchdogs in France, Germany and Greece are examining the exchange's reliance on reverse solicitation, the exemption under Article 61 of MiCA. Some regulators have asked Binance for information and could move to enforcement, including fines, if they are not satisfied.

Under the MiCA regime, unlicensed firms were expected to take immediate steps to wind down their EU operations from July 1, serving existing customers only to help them move or sell holdings. Coinpedia reports the rules fully took effect on July 1, 2026, and that non-EU exchanges cannot serve EU users without a valid licence.

Binance had registrations in six member states, in France, Italy, Lithuania, Poland, Spain and Sweden, and all of them have lapsed under MiCA. Customers outside those countries are served by an entity regulated in Abu Dhabi, where it was authorised in December 2025, according to one user and two people familiar with the arrangement.

Binance withdrew its MiCA application in Greece in June, a week after Reuters reported the Hellenic Capital Market Commission was set to reject it. Coinpedia reports the Greek licence application was rejected earlier this year.

Binance said it meets the regulatory requirements that apply to it in each market where it operates and keeps its products under review. The company said it is working to become authorised under MiCA.

Why it matters

ESMA's guidelines say the test for whether a client was solicited should be construed narrowly, that the question is one of fact, and that contractual arrangements or disclaimers cannot override contrary facts. The authority said the exemption is very narrowly framed and should not be used to get around MiCA requirements. The Dutch regulator, the AFM, said firms cannot simply claim the exemption and must meet clear requirements and guidelines.

Regulators are also examining other, smaller firms. Spain's securities regulator ruled out exceptions or extensions before the cutoff, and supervisors could fine firms they find in breach.

What the data shows

• MiCA's reverse solicitation exemption sits under Article 61.
• Binance held registrations in six member states, all of which have lapsed.
• Coinpedia dates MiCA's full effect to July 1, 2026.
• The Abu Dhabi entity serving some customers was authorised in December 2025.

Background

• MiCA is the EU's Markets in Crypto-Assets framework. Coinpedia says regulators are checking whether Binance is using a loophole to keep serving millions of EU users without a licence.
• The review also follows ESMA's request for unlicensed platforms to prepare wind-down plans, according to Coinpedia.

What is still unclear

• The reports differ on Greece: Decrypt says Binance withdrew its application, while Coinpedia says the application was rejected.
• Whether regulators will act, and what penalty they might seek, is not settled in the reports.
• Binance says it is working toward MiCA authorisation, but the reports give no date for that.

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