European regulators are examining how Binance continues to serve cryptocurrency customers across the European Union after the exchange failed to secure authorization under the bloc’s new digital-asset rules, according to Euronews.
The scrutiny centers on Binance’s reliance on a limited exemption known as “reverse solicitation,” which permits a company outside the EU to provide services when a customer approaches it entirely on their own initiative, Euronews reported Thursday.
The European Securities and Markets Authority, or ESMA, and regulators in France, Germany and Greece are among the authorities examining the arrangement, according to the Euronews report. Some regulators have sought information from Binance, and enforcement measures — potentially including financial penalties — could follow if authorities determine the company has not complied with applicable rules, Euronews said, citing the Financial Times.
The questions come after Binance failed to obtain authorization under the EU’s Markets in Crypto-Assets regulation, known as MiCA. Companies without the required authorization were expected to begin winding down their EU operations from July 1, with continued service generally limited to helping existing customers dispose of or transfer their crypto assets, according to Euronews.
Binance had previously sought MiCA authorization in Greece but withdrew that application before the end of the regulatory transition period. The company said at the time that it intended to pursue authorization through another EU member state, Euronews reported in June.
The current regulatory focus is whether Binance’s use of reverse solicitation fits within the exemption’s narrow boundaries.
ESMA told the Financial Times that the provision should be interpreted narrowly and treated as an exception rather than a means of avoiding MiCA obligations, according to Euronews. The Netherlands Authority for the Financial Markets similarly told the newspaper that crypto companies cannot rely merely on asserting that customers approached them independently and must satisfy specific requirements.
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Related: France Expands Crypto Exchange Audits to Secure EU-Wide Licenses
Binance’s previous registrations or licenses in EU countries including France, Spain and Poland have lapsed under the new MiCA framework, Euronews reported. Some European customers are instead being served through the exchange’s Abu Dhabi entity, which has been regulated there since December 2025.
Despite the regulatory transition, the service experienced by Binance customers in Europe has remained largely unchanged since the July deadline, according to Euronews. In markets where Binance lacks a local license, the company has been operating on the basis that customers are approaching it independently, the Financial Times reported, citing a person familiar with the matter.
Binance did not directly address regulators’ inquiries when contacted by Euronews. The company said it complies with regulatory requirements in the jurisdictions where it operates and remains committed to establishing a long-term business in Europe under MiCA. A Binance spokesperson told Euronews that the exchange is actively seeking MiCA authorization.
ESMA also declined to discuss Binance specifically. The agency told Euronews that supervision, investigations and enforcement under MiCA are responsibilities of national regulators. ESMA’s role includes coordinating supervisory practices, encouraging cooperation among national authorities and issuing guidance.
That division of authority means any enforcement action against Binance would be taken by national regulators rather than ESMA itself, according to Euronews. Regulators are also examining the practices of some smaller cryptocurrency companies, the publication reported.
The dispute highlights an early test of how European authorities will enforce MiCA’s restrictions on companies operating from outside the bloc. For Binance, the regulatory questions could determine how it is permitted to serve one of the world’s largest cryptocurrency markets while it pursues the EU authorization needed for a more permanent presence.
Source: Euronews
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