Binance is facing scrutiny in the European Union after reportedly continuing to serve some EU clients through the "reverse solicitation" exemption after failing to secure a Markets in Crypto-Assets (MiCA) license this summer, according to the Financial Times. The review involves the European Securities and Markets Authority (ESMA) as well as regulators in France, Germany, and Greece, with some authorities already requesting information from the exchange.
The issue centers on whether Binance’s activity fits within the narrow scope of the exemption. Under MiCA, unauthorized crypto service providers are in principle required to stop serving EU clients once the transition period ends. That transition period expired on July 1, 2026. Regulators are now examining whether Binance’s explanation meets the legal threshold for reverse solicitation.
If authorities find the exchange’s interpretation unsatisfactory, enforcement action could follow, including fines. ESMA has said clearly that the reverse solicitation exemption should be used in a "very narrow" way and must not become a route to bypass MiCA.
Binance continued to provide services to some European Union clients through the "reverse solicitation" exemption after failing to obtain an EU Markets in Crypto-Assets (MiCA) license this summer, according to the Financial Times.
The European Securities and Markets Authority (ESMA), along with regulators in France, Germany, and Greece, is reviewing whether Binance’s conduct meets the conditions for that exemption. Some regulators have already asked the exchange to submit related information.
If regulators are not satisfied with Binance’s explanation, they could take enforcement action, including fines. MiCA’s transition period ended on July 1, 2026, and unauthorized crypto service providers are in principle required to stop offering services to EU clients after that date.
ESMA has said the reverse solicitation exemption should be used in a "very narrow" manner and must not serve as a way to circumvent MiCA.
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