Summary
- European regulators, including the ESMA and national authorities from France, Germany, and Greece, are investigating Binance's operations within the EU.
- The exchange did not obtain a MiCA license this past summer and was expected to start winding down its EU activities by July 1.
- Potential fines may be imposed if regulators are not satisfied with Binance's responses.
European regulators are raising concerns regarding Binance's ability to serve EU clients after the exchange failed to secure a license under the new crypto regulations, as reported by the Financial Times.
The European Securities and Markets Authority (ESMA) and national regulators from France, Germany, and Greece are scrutinizing the exchange's use of reverse solicitation, which is an exemption provided under Article 61 of the MiCA regulations for services offered at the client's "own exclusive initiative." Some regulators have requested information from Binance and may consider enforcement actions, including fines, if they find the responses unsatisfactory.
According to the Markets in Crypto Assets (MiCA) framework, unlicensed companies were required to immediately start winding down their EU operations as of July 1, only servicing existing clients to facilitate the transfer or sale of their assets.
ESMA's guidelines clarify that the reverse solicitation exemption should be interpreted narrowly. They state that whether a client was solicited is a factual determination, emphasizing that "contractual arrangements or disclaimers cannot override established facts." The Dutch authority, AFM, reiterated that firms "cannot merely assert reverse solicitation," insisting that specific criteria must be satisfied. Both the French, German, and Greek regulators, along with ESMA and AFM, declined to comment on the situation regarding Binance.
Binance's Operations in Europe
In reality, customers located outside the countries where Binance maintained local registrations are served by a unit regulated in Abu Dhabi, which received authorization in December 2025. This information comes from one user and two insiders familiar with the situation. Binance previously held registrations in six EU member states: France, Italy, Lithuania, Poland, Spain, and Sweden, but all these have expired under MiCA regulations.
Binance has stated that it “adheres to applicable regulatory requirements” in all jurisdictions where it operates and that it continuously reviews its products for compliance. The company also mentioned that it is "actively pursuing MiCA authorization."
In June, Binance retracted its MiCA application in Greece just a week after Reuters reported that the Hellenic Capital Market Commission was expected to deny it. The exchange indicated it would seek authorization in another EU member state while implementing necessary compliance measures ahead of the July deadline, warning that some users might be impacted.
No grace period was granted. Just days before the deadline, the chairman of Spain's securities regulator dismissed any possibility of exceptions or extensions and confirmed that regulators were engaging with unlicensed firms to ensure they had plans to transfer client assets elsewhere.
Additionally, regulators are looking into other smaller firms, according to one source who spoke with the paper.