EU Regulators Target Binance Over Continued European Service Despite Lack of Authorization

Binance, the world's largest digital-asset trading venue, is under scrutiny by European Union regulators over its continued provision of services to customers within the bloc. This attention follows a summer order for Binance to scale back its European operations, which it failed to obtain authorization under the Markets in Crypto-Assets Regulation (MiCA).

Firms lacking authorization were supposed to wind down their EU activities by July 1 and assist customers only with moving or liquidating their crypto assets. However, regulators are now examining how Binance relies on reverse solicitation, a legal carve-out that permits non-EU companies to provide services to customers within the bloc provided those customers approach the service entirely on their own initiative.

Regulators have sought details from Binance and may pursue enforcement measures, such as financial penalties, should its replies prove unsatisfactory. The company's local authorizations in nations like France, Spain, and Poland expired under MiCA, while clients in other EU states are handled by its Abu Dhabi entity, which has been supervised since December 2025.

Binance functions under reverse solicitation in nations where it lacks a local authorization and is observing customers wishing to join voluntarily. However, the experience for European users on the platform remains unchanged since the MiCA deadline of July 1. Binance claims to be actively striving to become MiCA-authorized, but regulators will need to assess its interpretation of the exemption.