European regulators are examining whether Binance has correctly interpreted the reverse solicitation exemption under the Markets in Crypto-Assets Regulation to continue serving select customers following its entry into July without MiCA authorization. The European Securities and Markets Authority, along with authorities in France, Germany and Greece, has requested detailed information from the exchange on the matter.

MiCA Transition and Binance's Licensing Path

The MiCA framework took effect for the EU on July 1, 2026, replacing earlier national registration systems. Entities required authorization as crypto asset service providers by the deadline to operate across the bloc, with approvals from one member state allowing passporting into others.

Binance had pursued authorization through Greece, but the application was withdrawn on June 24 before the transition period closed. The exchange later indicated it would seek approval in another jurisdiction while keeping its plans open. As of early September, no new application had been publicly announced.

Access for EU Users Persists in Limited Form

Tests in August revealed that Binance continued onboarding new users in several European countries, completing identity verification and enabling cryptocurrency deposits on active accounts more than seven weeks after the deadline. Some markets saw restrictions, such as halted spot and margin trading in France, while others allowed primarily withdrawals.

Earlier customer communications had directed users toward wind-down procedures, and Binance stated that assets would remain accessible during the restrictions. The platform was absent from ESMA's register of authorized providers at the time.

Reverse Solicitation Rules Under Scrutiny

Article 61 of MiCA permits overseas providers to serve EU clients when those clients initiate contact independently. The exemption does not apply if the firm or its representatives solicit customers through advertising, promotions or other channels. Contractual statements claiming independent approach do not override the actual circumstances.

ESMA has described the reverse solicitation provision as narrowly framed and intended as an exception rather than a workaround for full MiCA compliance.

Regulatory Inquiries and Potential Actions

National regulators have sought confirmation that Binance was winding down activities requiring authorization. Additional questions now focus on how the exchange has maintained or accepted services under the exemption since the deadline. Enforcement measures, including fines, remain possible if the responses fail to meet regulatory expectations.

ESMA is preparing a broader supervisory phase for MiCA, with plans to create common risk indicators and reporting standards for crypto asset service providers. These efforts will support the European Commission's upcoming review of the regulation, due by June 2027.

Binance Position

Binance has stated that it is actively working toward MiCA authorization and complies with applicable regulatory requirements in every jurisdiction where it operates. The exchange maintains that it followed the rules in place at the time and continues to do so.