EU Presses Binance Over ‘Reverse Solicitation’ Exemption for Users

European regulators have launched a coordinated pushback against Binance regarding its reliance on the Markets in Crypto Assets (MiCA) regulatory regime's "reverse solicitation" exemption to service users within the European Union. Decrypt and Euronews reported on October 1, 2026, that watchdogs are examining whether Binance is improperly using the exemption to keep serving European customers after failing to obtain direct authorization.

Who is investigating Binance?

ESMA, alongside national regulators in France, Germany, Greece, and the Dutch market watchdog AFM, is examining how cryptocurrency platforms utilize Article 61 of the MiCA framework. Under MiCA rules, unlicensed firms were required to take immediate steps to wind down EU operations starting July 1, serving existing customers only to help them transfer or sell their holdings. Decrypt reported that Binance failed to secure a MiCA license over the summer, notably withdrawing its application in Greece in June after Reuters reported the Hellenic Capital Market Commission was set to reject it, while registrations in six other member states—France, Italy, Lithuania, Poland, Spain, and Sweden—lapsed.

What does ESMA say about reverse solicitation?

ESMA stated that the reverse solicitation exemption should be "construed narrowly," emphasizing that whether a client was solicited remains a "question of fact" and that "contractual arrangements or disclaimers cannot supersede contrary facts." ESMA added that the exemption is "very narrowly framed" and should "not be used to circumvent MiCA requirements." Echoing this stance, the Dutch AFM stated that firms "cannot simply claim reverse solicitation" and that "clear requirements and guidelines have to be met."

How is Binance responding to the regulatory pressure?

Binance serves customers outside countries where it held local registrations via an entity regulated in Abu Dhabi that was authorized in December 2025. In response to the inquiries, Binance stated that it “complies with applicable regulatory requirements” wherever it operates, keeps its products under review against relevant obligations, and is "actively working toward becoming MiCA-authorised."

What happens next for the exchange?

Regulators who have asked Binance for information could move to enforcement action, including fines, if they are not satisfied with Binance's response. The exact number of European users currently being served under the Abu Dhabi entity via reverse solicitation is not specified in the reports.