EU regulators probe Binance over reverse solicitation rules under MiCA
CIE News ·
European regulators are investigating how Binance continues to serve EU users via an Abu Dhabi entity under MiCA's reverse solicitation exemption, Decrypt reported.
European regulators are investigating whether Binance is misusing reverse solicitation rules to continue offering services to European Union residents without a MiCA license, Decrypt reported on October 1, 2026. The European Securities and Markets Authority and national authorities in France, Germany, and Greece are scrutinizing the exchange under Article 61 of the Markets in Crypto Assets framework, which permits non-EU firms to serve local users only at the customer's exclusive initiative. Regulators have sought information from the platform and could initiate enforcement measures, including fines, if unsatisfied.
Under MiCA, unlicensed entities were mandated to begin winding down EU operations on July 1, 2026, restricting remaining customer interactions strictly to liquidating or withdrawing assets. Although Binance formerly held local registrations across six member states, those permits lapsed under the MiCA regime, prompting the exchange to serve users in those regions through an Abu Dhabi-regulated entity that gained authorization in December 2025.
Binance stated that it adheres to all applicable regulatory requirements and is actively working to obtain MiCA authorization. ESMA clarified that reverse solicitation exemptions are strictly interpreted and cannot be employed to evade MiCA mandates, though neither ESMA nor national authorities offered comment regarding the specific probe into Binance.