EU Regulators Probe Binance Over Unlicensed Operations Post-MiCA

EU securities regulators are examining whether Binance is improperly serving European Union clients after failing to secure a license under the Markets in Crypto-Assets Regulation (MiCA), the Financial Times reported on October 1, 2026. The European Securities and Markets Authority (ESMA) and national regulators in France, Germany and Greece are scrutinizing Binance's use of "reverse solicitation," a legal exemption permitting non-EU firms to serve bloc customers only when clients act entirely on their own initiative. Unlicensed companies were required to wind down EU operations from July 1, 2026. Regulators have requested information from Binance and could impose fines if unsatisfied, the FT reported. ESMA said the exemption "should be regarded as the exception and not be used to circumvent MiCA requirements." The Dutch AFM stated that firms "cannot simply claim reverse solicitation." Binance's local licenses in France, Spain and Poland lapsed under MiCA. EU customers are now served through its Abu Dhabi entity, regulated since December 2025. Binance said it is "actively working toward becoming MiCA-authorised." Enforcement authority rests with national regulators, not ESMA.