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Four EU regulators question how Binance keeps European customers through a MiCA exemption

ESMA and regulators in France, Germany and Greece are examining how Binance still serves EU users without the MiCA license it needed by July 1. The inquiry tests whether a narrow exemption can hold an exchange's European business while it waits for authorization.

The Investor · Invest desk

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What happened

  • Binance is relying on MiCA's reverse-solicitation exemption, meant for clients who approach a non-EU firm on their own initiative, to keep serving some EU customers, the FT reported.
  • Binance withdrew its Greek MiCA application in June, a week after Reuters reported the Hellenic Capital Market Commission was set to reject it.
  • ESMA on Wednesday asked for stronger powers over non-EU firms that solicit European investors without MiCA authorization, in its response to the Commission's review of the rules.
  • Regulators are also examining other, smaller crypto firms, according to one person who spoke to the FT.

Why it matters

  • Who's exposed exposure Because ESMA treats solicitation as a question of fact, each EU user Binance keeps through the exemption is a case a national supervisor can test on its own evidence.
  • Who has to decide decision A fine in any one market would put a price on Binance's choice to keep serving users there instead of the wind-down MiCA required of unlicensed firms.
  • What it sets up precedent With smaller firms also under examination, the reading regulators apply to Binance's answers is likely to become the test for every non-EU exchange using the exemption.

Next story · Invest · yesterday

BingX EU wins Austrian MiCA license 105 days after the transition period ended

Confirmed4 publishers

Germany and Greece, two of the three national regulators named in the Financial Times report, supervise markets where Binance never held a registration [20]. The exchange's six registrations were in France, Italy, Lithuania, Poland, Spain and Sweden, and all of them lapsed under MiCA [9]. Customers outside those six countries are served by a Binance entity regulated in Abu Dhabi, which was authorized there in December 2025, according to one user and two people familiar with the arrangement [3]. On that account, German and Greek users are among its customers [18]. France is the only former registration country among the inquiring regulators [20].

Before the July 1 cutoff, Binance told Cointelegraph that EU access would depend partly on a user's jurisdiction, account status and "servicing entity" [24]. The test that entity now faces is a narrow one [8]. ESMA told the FT the exemption is very narrowly framed and should "not be used to circumvent MiCA requirements" [13]. Its guidelines treat solicitation as a question of fact and state that "contractual arrangements or disclaimers cannot supersede contrary facts" [8]. The Dutch regulator, the AFM, said firms "cannot simply claim reverse solicitation" [15].

From here, the regulators that asked for information could accept Binance's answers and stop [6]. They could instead fine the exchange one market at a time; the reports say enforcement, including fines, could follow if the answers do not satisfy them [6]. Or the Commission could grant the stronger powers over unlicensed non-EU firms that ESMA requested on Wednesday [21]. I'd expect at least one fine, though the evidence for that is the strictness of the guidance, not anything a regulator has said about Binance. The information requests already exist, while new ESMA powers depend on a review of the regulation that is still at the consultation stage [6][21]. The first outcome might never be announced. BaFin declined to say more, citing legal confidentiality obligations [17].

Binance has not wound down, or rather, it has moved the service of at least some customers to an entity outside the bloc [3]. MiCA expected unlicensed firms to begin winding down from July 1, serving existing customers only to help them move or sell their holdings [7], and days before the deadline the chairman of Spain's securities regulator ruled out exceptions or extensions [12]. Binance's alternative to an exit is the license it says it is "actively working toward becoming MiCA-authorised" for [10], a commitment it repeated to Cointelegraph on Sept. 18 [14]. Neither the reports nor Binance's statements give an EU customer count, a possible fine, or the member state where it has applied, so the cost of staying cannot be set against the cost of leaving.

ESMA chair Verena Ross said on Monday that the regulator's MiCA focus had shifted "from rulemaking towards supervision and convergence" [22]. ESMA's register of non-compliant crypto providers went from 164 entries on July 16 to 173 on Sept. 30, nine additions in 76 days [23][25]. Binance is not on it; MiCA calls the list non-exhaustive, and ESMA updates it from information supplied by national authorities and other sources [16]. If Binance is authorized in a member state before any of the three national regulators acts, the exemption will have held long enough, and I will have been wrong to expect fines [1].

What to watch

  • The Commission's legislative proposal from its MiCA review, and whether it gives ESMA the powers over unlicensed non-EU firms it requested.
  • Whether Binance appears in ESMA's next update to its register of non-compliant crypto providers.
  • Enforcement against any of the smaller firms under examination, the first public sign of how strictly national regulators read the exemption.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

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  1. [1]

    ESMA and regulators in France, Germany and Greece are examining Binance's use of reverse solicitation under MiCA, the Financial Times reported on Thursday.

    Reported Supported Source: Cointelegraph, citing the Financial TimesView cited source
  2. [2]

    Binance is relying on reverse solicitation to continue serving some EU customers, the FT reported, citing a person familiar with the matter.

    Reported Supported Source: Cointelegraph, citing the Financial TimesView cited source
  3. [3]

    Binance customers outside the countries where it held local registrations are served by an entity regulated in Abu Dhabi, where it was authorized in December 2025, according to one user and two people familiar with the arrangement.

    Reported Supported Source: Decrypt, citing the Financial Times and people familiarView cited source
  4. [4]

    Binance withdrew its MiCA application in Greece in June, a week after Reuters reported the Hellenic Capital Market Commission was set to reject it, and said it would pursue authorization in another member state.

    Reported SupportedView cited source
  5. [5]

    The reverse-solicitation exemption allows non-EU crypto asset service providers to serve customers who approach them entirely on their own initiative.

    Reported SupportedView cited source
  6. [6]

    Some regulators have asked Binance for information and could move to enforcement, including fines, if they are not satisfied.

    Reported Supported Source: Decrypt, citing the Financial TimesView cited source
  7. [7]

    Under MiCA, unlicensed firms were supposed to take immediate steps to wind down EU operations from July 1, serving existing customers only to help them move or sell their holdings.

    Reported SupportedView cited source
  8. [8]

    ESMA's guidelines say the reverse-solicitation test should be construed narrowly, that whether a client was solicited is a question of fact, and that "contractual arrangements or disclaimers cannot supersede contrary facts."

    Reported SupportedView cited source
  9. [9]

    Binance had registrations in six EU member states, France, Italy, Lithuania, Poland, Spain and Sweden, all of which have lapsed under MiCA.

    Reported SupportedView cited source
  10. [10]

    Binance said it is "actively working toward becoming MiCA-authorised."

    Reported Supported Source: Binance statementView cited source
  11. [11]

    Regulators are also examining other, smaller firms, one person told the Financial Times.

    Reported Supported Source: Decrypt, citing one person who spoke to the FTView cited source
  12. [12]

    Days before the July 1 cutoff, the chairman of Spain's securities regulator ruled out exceptions or extensions.

    Reported SupportedView cited source
  13. [13]

    ESMA told the FT the exemption is very narrowly framed and should "not be used to circumvent MiCA requirements."

    Reported Supported Source: ESMA, as reported by Decrypt citing the FTView cited source
  14. [14]

    Binance told Cointelegraph on Sept. 18 that it continues pursuing MiCA authorization and remains committed to operating in Europe on a long-term compliant basis.

    Reported Supported Source: Binance to CointelegraphView cited source
  15. [15]

    The Dutch regulator, the AFM, said firms "cannot simply claim reverse solicitation."

    Reported Supported Source: AFM, as reported by Decrypt citing the FTView cited source
  16. [16]

    Binance does not appear on ESMA's latest non-compliant register, which MiCA describes as non-exhaustive and which ESMA updates based on information from national authorities and other sources.

    Reported SupportedView cited source
  17. [17]

    Germany's BaFin declined to provide further information, citing legal confidentiality obligations.

    Reported SupportedView cited source
  18. [18]

    On the FT-sourced account, Binance customers in Germany and Greece are served through the Abu Dhabi-regulated entity.

    Derived Supported
  19. [19]

    Four authorities are examining Binance: ESMA plus the national regulators of France, Germany and Greece.

    Derived Supported
  20. [20]

    Germany and Greece are not among the six member states where Binance held registrations; France is the only one of the three inquiring national regulators' countries that was.

    Derived Supported
  21. [21]

    ESMA on Wednesday called for stronger powers over non-EU companies that solicit European investors without MiCA authorization, in its response to the European Commission's consultation on reviewing the regulation.

    Reported SupportedView cited source
  22. [22]

    ESMA Chair Verena Ross said Monday that the regulator's MiCA focus had shifted "from rulemaking towards supervision and convergence."

    Reported Supported Source: Verena Ross, ESMA chairView cited source
  23. [23]

    ESMA's register of non-compliant crypto providers grew from 164 entries on July 16 to 173 in its Sept. 30 update.

    Reported SupportedView cited source
  24. [24]

    Ahead of the July 1 end of MiCA's transitional period, Binance told Cointelegraph that EU access would depend partly on a user's jurisdiction, account status and "servicing entity."

    Reported Supported Source: Binance to CointelegraphView cited source
  25. [25]

    ESMA's non-compliant register added nine entries in 76 days between July 16 and Sept. 30.

    Derived Supported

Sources

9 independent publishers whose own reporting we read for this story.

  1. bloomberg.com

    1 article · October 1, 2026

    Binance Questioned Over Operations in Europe Without License: FT - Bloomberg
  2. cointelegraph.com

    2 articles · October 1, 2026

    Binance’s EU services face scrutiny over licensing exemption: Report
  3. crowdfundinsider.com

    1 article · October 4, 2026

    EU Regulators Probe Crypto Exchange Binance’s Use of Reverse Solicitation to Keep Serving Customers without MiCA License
  4. crypto.news

    1 article · September 30, 2026

    Can Binance keep serving EU customers without a MiCA license?
  5. cryptobriefing.com

    1 article · October 1, 2026

    EU regulators question Binance over unlicensed operations in Europe
  6. cryptopolitan.com

    1 article · October 1, 2026

    Binance routes EU clients through Abu Dhabi as ESMA tests MiCA's first big case
  7. decrypt.co

    1 article · October 1, 2026

    EU Presses Binance Over ‘Reverse Solicitation’ Exemption for Users: Report
  8. euronews.com

    1 article · October 1, 2026

    EU watchdogs question Binance over unlicensed European operations | Euronews
  9. finance.yahoo.com

    2 articles · October 1, 2026

    EU Presses Binance Over ‘Reverse Solicitation’ Exemption for Users: Report
  10. pymnts.com

    2 articles · October 1, 2026

    Binance Faces Scrutiny Over Continuing Operations in the EU
  11. straitstimes.com

    1 article · September 30, 2026

    EU questions Binance over continued operations despite wind-down order: Report | The Straits Times
  12. unchainedcrypto.com

    1 article · October 1, 2026

    ESMA and National Regulators Scrutinize Binance's Reliance on 'Reverse Solicitation' Exemption in the EU, FT Reports - Unchained

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