Binance, the world’s largest crypto exchange, is facing fresh scrutiny from European regulators over its services in the region. Authorities are checking whether Binance is using MiCA’s “reverse solicitation” rule to keep serving EU users without the required license.
Regulators Question Binance’s MiCA Exemption
As per the report, the European Securities and Markets Authority (ESMA), along with regulators in France, Germany and Greece, is reviewing Binance’s use of the exemption.
Regulators are investigating whether the exchange 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 (MiCA) framework.
Under MiCA rules, which fully took effect on July 1, 2026, non-EU exchanges cannot offer services to EU users without a valid license. ESMA has also asked unlicensed platforms to prepare plans to wind down their EU operations.
Regulators now want to know whether Binance is using the reverse solicitation rule to avoid these requirements.
EU Questions Binance’s Use of “Reverse Solicitation” Rule
The main issue is Binance’s use of the reverse solicitation rule under MiCA. This rule allows a non-EU crypto company to serve a customer when the customer contacts the company on their own and directly asks for its services.
Regulators are now checking whether Binance is using this rule as a loophole to keep serving its wider EU customer base. They argue the rule should apply only when users genuinely contact the exchange first, not as a way to keep serving users across Europe without a MiCA license.
The review comes after Binance’s main license application in Greece was rejected earlier this year. It also follows ESMA’s request for unlicensed platforms to prepare plans to wind down their EU operations.
Binance Says It Is Working Toward MiCA Approval
In response to the investigation, Binance said it remains focused on meeting regulatory requirements across Europe. The exchange said it regularly reviews its products and services to ensure they follow local rules.
A Binance spokesperson said the company is working toward MiCA authorization and wants to provide users with a regulated and trusted service across Europe.
“We are actively working toward becoming MiCA-authorised and view this as an important step in providing users with a consistent, regulated, and trusted service across the European market.”
Meanwhile, if regulators find that Binance has breached MiCA rules, they could take enforcement action.
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