EU securities regulator ESMA and national regulators in France, Germany and Greece are questioning Binance's use of the "reverse solicitation" exemption to keep serving customers in the bloc. The review follows Binance's rejected Greek license application and an ESMA order for unlicensed platforms to wind down their EU operations.
Regulators Question Binance's MiCA Exemption
European regulators are checking whether Binance is using a loophole to keep serving millions of EU users without a MiCA license, despite failing to secure one under the bloc's Markets in Crypto-Assets framework. The European Securities and Markets Authority, along with regulators in France, Germany and Greece, is reviewing the exchange's use of the exemption, known as reverse solicitation.
Under MiCA, which fully took effect on July 1, 2026, non-EU exchanges cannot offer services to EU users without a valid license. Unlicensed firms were also told to begin winding down their EU operations and stop serving customers other than to help them transfer or sell holdings.
What Reverse Solicitation Allows — and What Regulators Dispute
Reverse solicitation lets a non-EU firm serve a customer only when that customer initiates contact entirely on their own, without being marketed to. Regulators argue the rule should cover only genuine unprompted inquiries, not a way to keep serving a wider EU customer base. ESMA has said the exemption should be regarded as the exception and not used to circumvent MiCA, while the Dutch regulator AFM said providers cannot simply claim the exemption applies.
The review follows Binance's main MiCA license application in Greece being rejected earlier this year. According to the Finance Magnates report, the exchange's local licenses in France, Spain and Poland have also lapsed under MiCA, and some EU customers are now served through Binance's Abu Dhabi-regulated entity.
Binance Says It Is Working Toward Approval
Binance said it remains focused on meeting regulatory requirements across Europe and regularly reviews its products to ensure compliance with local rules. According to Finance Magnates, Gillian Lynch, the exchange's head of Europe and the UK, told Reuters: "Binance is not leaving Europe."
Regulators could pursue enforcement action, including fines, if they find Binance has breached MiCA rules. Smaller companies using the same exemption are also under examination, according to the Finance Magnates report.
Sources: Coinpedia Fintech News, Finance Magnates
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