EU Regulators Scrutinize How Binance Serves Clients Without a MiCA License

European regulators are examining how Binance keeps serving customers in the EU without a license under MiCA rules. The Financial Times reported it on Thursday, citing sources, and Cointelegraph and Decrypt followed. The subject of the review is the exemption for clients who approach a foreign firm on their own, known as reverse solicitation.

What regulators reported

The European Securities and Markets Authority (ESMA) and supervisors in France, Germany and Greece are looking at how Binance uses the exemption in Article 61 of MiCA. According to the Financial Times, some regulators have already asked the company for information. If they are not satisfied with the answer, they could move to enforcement, including fines.

Separately, on Wednesday ESMA answered the European Commission's consultation on reviewing the regulation and asked for stronger powers over non-EU companies that court European investors without MiCA authorization. ESMA Chair Verena Ross said on Monday that the authority's focus is shifting from rulemaking to supervision and convergence.

How the reverse solicitation exemption works

The exemption lets non-EU companies serve clients who approach them for a service entirely on their own initiative. ESMA's guidelines require it to be read narrowly. Whether a client was solicited is decided on the facts, and contractual arrangements and disclaimers, per the guidelines, cannot override contrary facts.

The Dutch regulator AFM said firms cannot simply claim reverse solicitation. ESMA itself told the paper that the exemption is very narrowly framed and should not be used to circumvent MiCA requirements.

How Binance serves clients in the EU

The exchange held registrations in six member states: France, Italy, Lithuania, Poland, Spain and Sweden. All of them lapsed once MiCA took effect. Clients from other countries, according to one user and two people familiar with the arrangement, are served by an entity regulated in Abu Dhabi, where Binance was authorized in December 2025.

• In June Binance withdrew its MiCA application in Greece, a week after Reuters reported that the Greek regulator was set to reject it.
• The company then said it would seek authorization in another EU state.
• There was no grace period, and days before the deadline the head of Spain's securities regulator ruled out any exceptions or extensions.
• ESMA's register of non-compliant providers grew from 164 entries on July 16 to 173 as of September 30. Binance is not on it, though ESMA calls the register non-exhaustive.

Binance's response and what comes next

Binance said it complies with applicable regulatory requirements, reviews its products against its obligations and is actively working toward MiCA authorization. It did not confirm whether it is in talks with regulators. ESMA does not comment on specific cases, since supervision and investigations under MiCA sit with national authorities. BaFin declined to give details citing confidentiality, and the French and Greek regulators did not respond.

One person told the Financial Times that regulators are also looking at smaller firms. For clients of crypto exchanges in the EU, the practical question comes down to which legal entity serves them. Any decision on sanctions, if one comes, would be taken by national authorities.