ESMA and regulators in France, Germany and Greece question Binance over MiCA reverse solicitation
ESMA and national regulators in France, Germany and Greece are examining whether Binance properly relied on MiCA's reverse solicitation exemption to keep serving EU customers after July 1 without a licence.
Why it matters
The review is the first public test of how narrowly ESMA and national regulators will read reverse solicitation, an exemption that decides whether an unlicensed exchange can keep serving customers in the bloc. If regulators treat the narrow reading as binding, other non-EU firms relying on Article 61 face the same question, and Binance's EU customer base is exposed to enforcement or a wind-down.
Where the sources disagree
Which MiCA mechanism Binance is relying on to keep serving EU customers
Reverse solicitation exemption under Article 61 of MiCA
Crypto.News, Finance Magnates Crypto, CoinGape, Decrypt, Cointelegraph, Unchained, CryptoPotato
Transitional provision allowing firms with licensing applications in process to keep operating
Bitcoin Insider
Most outlets describe reverse solicitation under Article 61 as the mechanism under review, while Bitcoin Insider reported the review concerns a transitional provision under which firms with pending licensing applications can keep operating, and Finance Magnates Crypto also referred to a failed licence bid and a wind-down order.
Date from which Binance was required to wind down EU operations
July 1
Finance Magnates Crypto, CoinGape, Decrypt, Cointelegraph, Unchained, CryptoPotato
Failed to secure licences before the transition period ended in June
CoinGape, Bitcoin Insider
Most outlets and the rules themselves put the deadline at July 1 for unlicensed firms to take immediate steps, while Bitcoin Insider and CoinGape tie the licensing failure to June and Crypto.News describes Binance entering July without authorization.
Whether ESMA has stronger enforcement powers in play
ESMA is seeking stronger enforcement powers
Cointelegraph
Possible enforcement is limited to fines or measures regulators could take on Binance
Crypto.News, Finance Magnates Crypto, CoinGape, Decrypt, Unchained, CryptoPotato
Cointelegraph framed the story as ESMA seeking stronger enforcement powers, while the other outlets describe regulators weighing possible fines on Binance without mentioning any change to ESMA's powers.
Key facts
ESMA and national regulators in France, Germany and Greece are examining Binance's use of the reverse solicitation exemption under MiCA.
Reported by Crypto.News
Binance failed to secure a MiCA licence and unlicensed firms were required to take immediate steps to wind down EU operations from July 1, serving customers only to help them transfer or sell holdings.
Reported by Finance Magnates Crypto
ESMA said the reverse solicitation exemption is very narrowly framed, should be regarded as the exception and should not be used to circumvent MiCA requirements.
Reported by Crypto.News
The Dutch regulator AFM said service providers cannot simply claim reverse solicitation, and ESMA's guidelines say contractual arrangements or disclaimers cannot supersede contrary facts.
Reported by Finance Magnates Crypto
Binance withdrew its Greek MiCA application in June and said it would seek authorization in another EU member state.
Reported by CoinGape
Binance told the Financial Times and Cointelegraph that it complies with applicable regulatory requirements in the jurisdictions where it operates and is actively working toward becoming MiCA-authorised.
Reported by Crypto.News
Some regulators have requested information from Binance and could pursue enforcement measures including fines if its response does not satisfy them.
Reported by Crypto.News
The Wall Street Journal reported that European Central Bank President Christine Lagarde personally asked Greek Prime Minister Kyriakos Mitsotakis to block Binance's Greek application after Greek regulators had all but approved it.
Reported by CryptoPotato
What happened
ESMA and national regulators in France, Germany and Greece are examining whether Binance has relied properly on the reverse solicitation exemption in Article 61 of MiCA to keep serving EU customers, the Financial Times reported on October 1 citing people familiar with the matter. Reverse solicitation lets a firm outside the bloc serve EU customers who approach it entirely on their own initiative, and the Financial Times said ESMA told the paper the exemption is 'very narrowly framed' and 'should be regarded as the exception' rather than a way around MiCA; the Dutch regulator AFM said providers 'cannot simply claim reverse solicitation'. Unlicensed firms were supposed to take 'immediate steps' to wind down EU operations from July 1 and serve existing customers only to help them transfer or sell holdings, and Decrypt reported that ESMA's guidelines treat whether a client was solicited as a question of fact and say 'contractual arrangements or disclaimers cannot supersede contrary facts'. Some regulators have asked Binance for information and could take enforcement action, including fines, if the answer does not satisfy them, and Finance Magnates Crypto reported that one of the sources said other, smaller companies are also being examined. Binance, which withdrew a Greek application in June and said it would seek authorization in another member state, told the Financial Times and Cointelegraph that it complies with applicable regulatory requirements where it operates and is 'actively working toward becoming MiCA-authorised'; ESMA, AFM and the French, German and Greek regulators declined to comment on Binance specifically, and the nature and scope of the earlier wind-down order has not been detailed. CryptoPotato added that Binance said in June it had worked with regulators for about 18 months without a formal rejection, and that the Wall Street Journal reported Christine Lagarde personally asked Greek Prime Minister Kyriakos Mitsotakis to block the Binance application after Greek regulators had all but approved it, with the application clearing technical review by early June but a mandatory 40-day step left.
How the story developed
- Official statement
Binance says it is working toward MiCA authorisation and complies where it operates
Binance told the Financial Times it is 'actively working toward' becoming MiCA-authorised and told Cointelegraph on September 18 that it continues pursuing authorisation and is committed to operating in Europe long term on a compliant basis.
- First report
First report by Crypto.News
Can Binance keep serving EU customers without a MiCA license?
- Update
Financial Times reports ESMA and national regulators are questioning Binance over reverse solicitation
The Financial Times, citing people familiar with the matter, reported that ESMA and regulators in France, Germany and Greece are examining Binance's reliance on the exemption and that some have requested information.
- Official statement
ESMA and AFM state publicly that reverse solicitation must be read narrowly
ESMA told the Financial Times the exemption is 'very narrowly framed' and should not be used to circumvent MiCA; AFM said providers 'cannot simply claim reverse solicitation'. Neither commented on Binance specifically, and the French, German and Greek regulators declined to comment.
- Independent corroboration
Independently corroborated by Finance Magnates Crypto
Is "Reverse Solicitation" Under Scrutiny? EU Probes Binance’s Services after Wind-Down Order
- Update
Finance Magnates Crypto reports that smaller companies are also being examined
One of the sources cited by Finance Magnates Crypto said regulators are looking at other, smaller companies as well, though the scope of those examinations is not described.
- Update
Binance withdrew its Greek MiCA application in June and said it would seek authorization in another member state
Cointelegraph reported that Binance withdrew the Greek application in June and said it would pursue authorization elsewhere, while CoinGape reported ESMA said the exchange kept allowing new account openings in some European markets after the withdrawal.
- Update
Wall Street Journal reports Lagarde asked Greece's prime minister to block the Binance application
CryptoPotato cited the Wall Street Journal reporting that European Central Bank President Christine Lagarde personally asked Prime Minister Kyriakos Mitsotakis to block Binance's application after Greek regulators had all but approved it, with the application having cleared technical review by early June and a mandatory 40-day step outstanding.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 1 Oct 2026, 05:38 UTC: Crypto.News — 1 independent source, 1 reports
- 1 Oct 2026, 06:22 UTC: Bitcoin Insider — 2 independent sources, 2 reports
- 1 Oct 2026, 06:53 UTC: Finance Magnates Crypto, Mainstream media — 3 independent sources, 3 reports
- 1 Oct 2026, 08:06 UTC: CoinGape — 4 independent sources, 4 reports
- 1 Oct 2026, 08:56 UTC: Decrypt — 5 independent sources, 5 reports
- 1 Oct 2026, 10:07 UTC: Cointelegraph — 6 independent sources, 6 reports
- 1 Oct 2026, 10:22 UTC: Unchained — 7 independent sources, 7 reports
- 1 Oct 2026, 12:28 UTC: TheNewsCrypto — 8 independent sources, 8 reports
- 1 Oct 2026, 22:22 UTC: CryptoPotato — 9 independent sources, 9 reports
Affected entities
Also mentioned: U.S. Department of Justice, USD Coin, Circle, European Central Bank, U.S. Securities and Exchange Commission, United States, XRP
Original sources
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