Binance Faces EU Scrutiny Over Reverse Solicitation Practices

Binance is under scrutiny by EU regulators over its use of reverse solicitation to continue serving customers in the bloc despite an order to wind down its EU business. According to a report, the Financial Times reported that ESMA and national regulators are examining Binance's use of this exemption, which allows non-EU firms to serve EU customers who initiate the relationship entirely on their own initiative.

The exemption is meant to be used as an exception, not a loophole for unlicensed firms. Under MiCA, firms should have begun winding down operations and stopped serving new customers on July 1st. Binance, however, has said it complies with applicable regulatory requirements and is actively working towards becoming MiCA-authorised.

The exchange withdrew its MiCA application in Greece to pursue authorisation in another member state, but its local licenses in France, Spain, and Poland have lapsed under MiCA. Customers are reportedly being served by Binance's Abu Dhabi-regulated entity, which has held authorisation since December 2025.

The EU regulators are asking how customers were reverse solicited, and enforcement action, including fines, is possible if they're not satisfied. Other smaller companies are also under examination for similar practices.