Regulators Examine Binance Services Still Available In The EU

Many European regulators demand explanations from the Binance exchange regarding the continuation of its services within the European Union without MiCA authorization. “Reverse solicitation” is among the questions raised. It is an exemption that the platform would invoke to serve certain European clients from a structure located outside the EU.

Binance and MiCA : Key points of the case

If they have not received authorization compliant with the MiCA regulation, service providers no longer benefiting from the transitional regime must cease their activities in the European Union from July 1^st, 2026. The exchange platform Binance has not yet obtained this authorization, but certain clients would still have access to its services.

According to provided information, French, German, and Greek authorities are among the regulators examining this situation. Their questions mainly concern the conditions under which the exchange uses reverse solicitation.

Here are the main elements of the case :

• Binance does not yet hold a MiCA authorization allowing it to offer services throughout the European Union ;
• Its former national authorizations in France, Spain, and Poland do not replace the new European license ;
• Certain clients would be served by a Binance entity regulated in Abu Dhabi ;
• Supervisors are trying to determine if clients really contacted the platform on their own initiative ;
• Abusive use of the exemption would lead to coercive measures or financial sanctions.

Thus, a user of Austrian nationality pointed out that “nothing has changed” for him and that he could still buy, sell, and trade cryptos. This continuity raises questions about how Binance applies these new European directives.

Reverse solicitation remains a very narrow exception

MiCA allows a company located outside the European Union to offer a service to a European investor if the latter has requested it on their own initiative. Such an exception, however, does not represent a general solution for continuing to provide services without a license.

An exchange cannot solicit a client, actively promote its products in their country, or use intermediaries to solicit investors. It also cannot immediately invoke reverse solicitation simply because a user visits its platform.

The European Securities and Markets Authority reminds that: “the reverse solicitation exemption must be understood as being very narrowly defined”. According to ESMA, it must remain the exception and not serve to circumvent MiCA obligations.

For its part, Binance confirms compliance with applicable regulatory requirements. The exchange is actively working to obtain a MiCA authorization. Information requests made by supervisors do not, at this stage, represent a conviction or proof of an offense.

ESMA wants to strengthen powers related to MiCA

This case arises at a time when ESMA is requesting a revision of certain aspects of MiCA. The authority has proposed consolidated powers against third-country structures that solicit European investors without authorization in its response on September 30 to a European Commission consultation.

The supervisor also wants to allow authorities the ability to block fraudulent platforms and to quickly freeze cryptos suspected of being linked to money laundering, terrorist financing, or market manipulation. It also calls for more transparency on fees and stricter regulation of influencer promotions.

These changes have not yet been adopted. They represent recommendations addressed to the Commission as part of the MiCA review. ESMA explains this progress by the slowness of current procedures, because when a freeze occurs, suspicious assets sometimes have already disappeared.

Binance still needs to obtain its MiCA authorization

The MiCA regulation currently relies on national supervision. A company obtains its license from the authority of a member country and then uses this passport to offer its services in the 27 countries of the Union.

This system has triggered fears of divergences between regulators, as some companies may favor more flexible jurisdictions. ESMA’s new proposals therefore aim to harmonize controls and limit possibilities for circumvention.

Binance continues its authorization request, but no public timetable has been communicated. Until then, the exchange will have to demonstrate that the services still accessible to European clients strictly respect the limits of reverse solicitation. The outcome of the case could also set a precedent for other foreign platforms continuing to serve the European market without a MiCA license.