European regulators are scrutinizing Binance over its continued operations within the bloc. The European Securities and Markets Authority and national watchdogs in France, Germany, and Greece are investigating the exchange's use of the reverse solicitation exemption under Article 61 of the MiCA regulation.
This exemption allows firms outside the EU to provide services only at a client's exclusive initiative. Regulators warn that this provision cannot be used to bypass MiCA requirements. Authorities may pursue enforcement actions, including fines, if they determine the company is not in compliance with the rules that took effect on July 1.
Binance previously held registrations in France, Italy, Lithuania, Poland, Spain, and Sweden, but these have since lapsed. Reports indicate that users outside these jurisdictions are currently served by an entity authorized in Abu Dhabi in December 2025. The company states it is working toward becoming MiCA-authorized.
The exchange withdrew its license application in Greece in June following reports of a potential rejection. Regulators emphasize that contractual disclaimers regarding reverse solicitation do not supersede actual facts. Officials in Spain confirmed there were no grace periods or extensions granted to firms failing to meet the new standards.
