Binance's Reverse Solicitation Gambit Sparks EU Regulatory Scrutiny

Regulators in Europe are investigating Binance's continued provision of services to European clients despite not having the necessary MiCA licenses. According to a report by the Financial Times, Binance is relying on the 'reverse solicitation' exception, which allows an extra-UE exchange to serve EU clients without a license if it is the client who initiates contact.

The ESMA and national regulators in France, Germany, and Greece are examining how Binance is using this exemption. The regulator's goal is to determine whether Binance is genuinely offering services at the initiative of its European clients or simply exploiting the loophole.

Binance previously held licenses in France, Spain, and Poland but these have expired under MiCA rules. Some EU clients are still being served through a regulated entity in Abu Dhabi, which was authorized in December 2025.