EU Regulators Tell Binance: "Solicited? Strictly Speaking, No." 🔍

Binance is facing a multi-front European investigation into its continued use of the "reverse solicitation" exemption under the Markets in Crypto-Assets (MiCA) regulation to serve EU customers without holding a MiCA license, the Financial Times reported on October 1. The European Securities and Markets Authority (ESMA), alongside regulators in France, Germany and Greece, have requested information from the exchange about the exemption, warning that failure to satisfy their concerns could trigger enforcement action including fines.

Under Article 61 of MiCA, the reverse solicitation exemption permits non-EU crypto asset service providers to serve clients entirely on the customer's "own exclusive initiative." ESMA's guidelines state the 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." The authority told the FT the exemption is very narrowly framed and should "not be used to circumvent MiCA requirements." The Dutch Authority for the Financial Markets (AFM) added that firms "cannot simply claim reverse solicitation."

Unlicensed firms were required to wind down EU operations from July 1, serving existing customers only to help them move or sell their holdings. Binance had registrations in six member states — France, Italy, Lithuania, Poland, Spain and Sweden — all of which have lapsed under MiCA. The exchange withdrew its Greek MiCA application 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. Some customers outside jurisdictions where Binance held local registrations are now being served by an entity regulated in Abu Dhabi, which Binance was authorized in December 2025, according to one user and two people familiar with the arrangement.

Binance said it "complies with applicable regulatory requirements" wherever it operates, that it keeps its products under review against relevant obligations, and that it is "actively working toward becoming MiCA-authorised." The company did not confirm whether it is in talks with EU regulators. The French, German and Greek regulators declined to comment, as did ESMA and the AFM on Binance specifically. Germany's Federal Financial Supervisory Authority (BaFin) also declined, citing legal confidentiality obligations.

Separately on Wednesday, ESMA called for stronger powers over non-EU companies that solicit European investors without MiCA authorization as part of its response to the European Commission's consultation on reviewing the regulation. ESMA Chair Verena Ross said Monday the regulator's MiCA focus had shifted "from rulemaking towards supervision and convergence." Binance does not appear on ESMA's register of non-compliant crypto providers, which grew from 164 entries on July 16 to 173 in its September 30 update; MiCA describes the list as "non-exhaustive" and ESMA updates it based on information from national authorities and other sources.