Binance Faces EU Scrutiny Over Alleged MiCA Reverse Solicitation
The European Union's Markets in Crypto-Assets (MiCA) regime has put Binance under scrutiny for allegedly exploiting a narrow carve-out to continue serving European consumers after missing its July 1, 2026 authorization deadline.
Binance had initially applied for a license from Greece's Hellenic Capital Market Commission but withdrew the application on June 24, 2026, anticipating rejection. Despite informing users in several countries of a wind-down, Binance continued onboarding by invoking MiCA reverse solicitation.
The regulators in France, Germany, and Greece, as well as the European Securities and Markets Authority (ESMA), are assessing whether Binance improperly used this exception to continue operating in the EU. The case sets a precedent for how strictly Europe will enforce its transitional period.
According to ESMA's aggregated data from August 2026, only 281 out of 1,343 providers operating in the EU had achieved authorization by the deadline. Of those not authorized, 12% were deemed high or serious risk compared to 2% for authorized companies.