Binance Faces EU Scrutiny Over Crypto Services Without MiCA License

European regulators are reviewing how Binance continues serving customers across the EU after the exchange failed to secure authorization under MiCA (Markets in Crypto-Assets regulation). The issue is whether Binance is relying too heavily on “reverse solicitation,” the narrow exemption that lets an offshore firm serve a customer only when the customer makes the first move on their own.

1. The European Securities and Markets Authority (ESMA) and regulators in France, Germany and Greece are among the authorities looking at Binance’s setup, according to Euronews. Some regulators have already asked the company for information, and enforcement action — including financial penalties — could follow if they conclude Binance is not complying with the rules.
2. The scrutiny follows Binance’s failure to obtain MiCA authorization. Under the regime, firms without the required approval were expected to start winding down EU operations from July 1, with continued activity generally limited to helping existing customers transfer or dispose of their crypto assets.
3. Binance had previously sought MiCA authorization in Greece, but withdrew that application before the end of the transition period. The company said it planned to pursue authorization through another EU member state, Euronews reported in June.
4. The core regulatory question is whether Binance’s use of reverse solicitation stays within the exemption’s narrow boundaries. ESMA told the Financial Times that the exemption should be interpreted narrowly and treated as an exception, not a way around MiCA obligations. The Netherlands Authority for the Financial Markets gave the same basic message: crypto firms cannot just say customers approached them independently and call it a day.
5. Binance’s previous registrations or licenses in EU countries including France, Spain and Poland have lapsed under MiCA, Euronews reported. Some European customers are now being served through Binance’s Abu Dhabi entity, which has been regulated there since December 2025.

For PSPs and crypto merchants, the important part is not the headline drama. It is the pattern: if a firm does not have MiCA authorization, regulators will look very closely at whether its EU servicing model is really an exemption, or just licensing by another name.