TLDR
- EU regulators are questioning Binance’s use of a legal exemption to keep serving customers.
- The exemption, called “reverse solicitation,” lets non-EU firms serve EU clients under strict conditions.
- Binance lost its ability to operate normally in the EU after its MiCA license bid was rejected.
- ESMA and regulators in France, Germany, and Greece are reviewing the matter.
- Enforcement action, including fines, is possible if regulators reject Binance’s position.
European Union regulators are looking closely at Binance, the world’s largest cryptocurrency exchange. The question is whether the company is wrongly using a legal exemption to keep serving customers in the region.
FT: EU Regulators Scrutinize Binance’s Use of MiCA Exemption
Binance, the world’s largest crypto exchange, is under scrutiny from EU regulators over its use of MiCA’s “reverse solicitation” exemption to continue serving some European customers after failing to secure a license,… pic.twitter.com/CNhOVb5Fji
— Wu Blockchain (@WuBlockchain) October 1, 2026
The Financial Times first reported the story on October 1, 2026. Reuters and other outlets later confirmed parts of the report.
What Happened With Binance’s EU License
Binance applied for a license under the EU’s Markets in Crypto-Assets rules, known as MiCA. That application was rejected earlier this year.
Under MiCA, crypto companies needed a license by the end of June to keep operating across the EU. Without one, Binance should not have been able to serve new EU clients from July onward.
Instead, reports say Binance has continued serving some European customers. The company has done this using a rule called “reverse solicitation.”
Reverse solicitation allows a firm based outside the EU to serve EU clients in specific cases. The client must reach out to the firm entirely on their own, without any marketing or solicitation from the company.
How Regulators Are Responding
The European Securities and Markets Authority, known as ESMA, is involved in the review. National regulators in France, Germany, and Greece are also looking into the matter.
ESMA told the Financial Times that reverse solicitation should be read narrowly. The regulator said it should be treated as an exception, not a way around MiCA’s rules.
Some regulators have already asked Binance for information. They could take enforcement action, including fines, if they are not satisfied with the company’s response.
Binance told the Financial Times it is working toward becoming authorized under MiCA. The company added that it follows the rules in the places where it operates.
Reuters said it could not independently confirm the Financial Times report. Binance and ESMA did not immediately respond to requests for comment from Reuters.
This case affects more than one company. It touches millions of crypto users across Europe who rely on Binance for trading.
Analysts tracking the story say the outcome could shape how other exchanges handle EU rules going forward. Centralized exchanges operating without a MiCA license may face similar questions.
Short-term forecasts tied to the news point to caution in trading activity. Some analysts have flagged a stronger US dollar and rising bond yields as signs of broader risk aversion this week.
For now, Binance says it is cooperating with regulatory requirements. The exact scope of the EU review, and any next steps, have not been made public.
No fines or formal enforcement actions have been announced as of this report. Binance’s status under MiCA remains undecided while the review continues.
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