European regulators are examining whether Binance continued serving EU customers after losing permission to operate under the bloc’s Markets in Crypto-Assets framework.
Binance’s MiCA application was rejected earlier in 2026, and unlicensed providers were required to stop operating across the bloc from July. Officials are now questioning the exchange’s reliance on “reverse solicitation,” Reuters reported, citing the Financial Times. Reuters
Reverse solicitation allows an offshore company to serve an EU customer when that customer independently initiates the relationship. It is designed as a narrow exception, not a general route for an unlicensed platform to market or maintain ordinary regional operations.
The European Securities and Markets Authority told the Financial Times that the exemption should not be used to circumvent MiCA. Several national regulators have reportedly requested information from Binance and could consider fines or other enforcement if its explanation is inadequate.
Binance says it complies with applicable requirements and is working toward MiCA authorization. No public enforcement order or finding that Binance violated the regulation has been announced.
The dispute could affect millions of customers and determine how aggressively regulators police offshore platforms after MiCA’s transition period. A broad interpretation of reverse solicitation would weaken the practical value of the licensing regime.
TOKEN RECON ASSESSMENT
The decisive issue is customer acquisition, not where Binance locates its servers. Regulators will examine whether EU users truly initiated relationships without promotion, redirection or continued servicing that amounted to active regional business.
A formal enforcement action, license decision or customer wind-down notice would convert the present scrutiny into a concrete operational event. Until then, this remains a reported regulatory examination rather than a proven breach.
Sources
Reuters: EU questions Binance over continued operations
Financial Times: EU questions Binance after MiCA wind-down order
