EU regulators question Binance's use of reverse solicitation, FT reports

European regulators are examining how Binance continues to serve customers in the bloc after failing to secure a license under the Markets in Crypto-Assets (MiCA) rules, the Financial Times reported, citing people familiar with the matter. The European Securities and Markets Authority (ESMA) and national regulators, including those in France, Germany and Greece, are scrutinizing Binance's reliance on reverse solicitation. Article 61 of MiCA permits a firm outside the bloc to provide services at a client's own exclusive initiative. Some regulators have asked Binance for information and could pursue enforcement, including fines, if they are not satisfied, according to the Financial Times report. Under MiCA, unlicensed firms were supposed to take immediate steps to wind down EU operations from July 1. Those firms could serve existing customers only to help them move or sell their holdings. ESMA's guidelines say the exemption must be interpreted narrowly and that whether a firm solicited a client depends on the facts. The guidelines say contracts or disclaimers cannot override contrary facts. ESMA said the exemption should not be used to circumvent MiCA requirements. The Dutch regulator, the AFM, said firms cannot simply claim reverse solicitation without meeting the requirements and guidelines. The French, German and Greek regulators declined to comment. ESMA and the AFM declined to comment on Binance specifically. Customers outside countries where Binance held local registrations are served by an entity regulated in Abu Dhabi, according to one user and two people familiar with the arrangement. The entity was authorized in Abu Dhabi in December 2025. Binance's registrations in France, Italy, Lithuania, Poland, Spain and Sweden have all lapsed under MiCA. Binance said it complies with applicable regulatory requirements wherever it operates and reviews its products against relevant obligations. Binance said it is actively working toward MiCA authorization. Binance withdrew its MiCA application in Greece in June, a week after Reuters reported that the Hellenic Capital Market Commission was set to reject it. Binance said at the time that it would seek authorization in another member state and take steps to remain compliant before the July deadline. Binance warned that some users might be affected. There was no grace period. Days before the cutoff, the chairman of Spain's securities regulator ruled out exceptions or extensions. The chairman said supervisors were contacting unlicensed firms to ensure they had plans to transfer client assets elsewhere. Regulators are also examining other, smaller firms, one person told the Financial Times.