In brief

• ESMA and national regulators in France, Germany and Greece are looking at how Binance continues to serve EU users, the Financial Times reported.
• The exchange failed to secure a MiCA license this summer and should have begun winding down its EU business from July 1.
• Regulators could impose fines if they are not satisfied with the response.

European regulators are questioning how Binance continues to serve customers in the bloc months after failing to secure a license under its crypto rules, the Financial Times reported, citing people familiar with the matter.

The European Securities and Markets Authority and national watchdogs including those in France, Germany and Greece are examining the exchange's reliance on reverse solicitation, the exemption under Article 61 of MiCA for services a firm outside the bloc provides at what the rules call the client's "own exclusive initiative." Some regulators have asked the company for information, and could move to enforcement, including fines, if they are not satisfied.

Under the Markets in Crypto Assets regime, unlicensed firms were supposed to take immediate steps to wind down their EU operations from July 1, serving existing customers only to help them move or sell their holdings.

ESMA's guidelines say that 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 paper the exemption is very narrowly framed and should "not be used to circumvent MiCA requirements." The Dutch regulator, the AFM, said firms "cannot simply claim reverse solicitation," adding that clear requirements and guidelines have to be met. The French, German and Greek regulators declined to comment, as did ESMA and the AFM on Binance specifically.

Binance and Europe

In practice, customers outside the countries where Binance held local registrations are served by an entity regulated in Abu Dhabi, where it was authorized in December 2025, according to one user and two people familiar with the arrangement. The exchange had registrations in six member states, in France, Italy, Lithuania, Poland, Spain and Sweden, all of which have lapsed under MiCA.

Binance said it “complies with applicable regulatory requirements” wherever it operates and that it keeps its products under review against relevant obligations. The company added that it is "actively working toward becoming MiCA-authorised."

The exchange withdrew its MiCA application in Greece in June, a week after Reuters reported the Hellenic Capital Market Commission was set to reject it, and said at the time it would pursue authorization in another member state while taking the steps needed to stay compliant before the July deadline. It warned then that some users might be affected.

There was no grace period. Days before the cutoff, the chairman of Spain's securities regulator ruled out exceptions or extensions, and said supervisors were in contact with unlicensed firms to ensure they had plans to transfer client assets elsewhere.

Regulators are also examining other, smaller firms, one person told the paper.