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EU officials are examining whether Binance is improperly relying on the reverse solicitation exemption to continue providing crypto services to customers in the bloc, the Financial Times reported Thursday.
The Markets in Crypto-Assets regulations require unlicensed crypto companies to begin winding down their EU businesses from July 1 and restrict services to existing customers to activities needed to transfer or sell their crypto holdings. Reverse solicitation provides a limited exception for companies outside the EU when customers independently initiate a business relationship, but European rules place strict limits on its use.
The European Securities and Markets Authority (ESMA) and regulators in France, Germany and Greece are among those looking into the issue, with some authorities requesting information from Binance.
ESMA has stressed that reverse solicitation should be used narrowly and should not provide a way for crypto companies to avoid MiCA requirements.
The Dutch financial regulator, AFM, similarly said providers cannot simply claim that customers approach them first and must comply with clear requirements and guidelines. Regulators could impose fines or other enforcement measures if Binance’s explanation does not satisfy them, according to the latest report.
Binance’s European operations vary by jurisdiction. Customers who are not based in countries where Binance previously held local licenses are served through its Abu Dhabi-regulated entity, according to the FT and people familiar with the matter. Binance became regulated in Abu Dhabi in December 2025.
Binance is reportedly relying on reverse solicitation in EU countries where it does not hold local licenses, with customers choosing to onboard without being directly marketed to. Regulators are questioning the basis for classifying these relationships as reverse solicited while also examining other smaller crypto companies over their use of the exemption.
The probe came after the exchange’s MiCA license application in Greece failed to proceed as expected. Apart from that, the licenses it previously held in France, Spain and Poland have lapsed under the new framework.
Binance was said to be exploring alternative paths to obtain MiCA authorization. Gillian Lynch, Binance’s head of Europe and the UK, stated previously that the exchange planned to continue operating in the region despite the setback.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.
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