EU regulators probe Binance's reliance on reverse-solicitation after licence denial

European regulators, led by ESMA, have opened a formal inquiry into Binance's continued activity in the bloc after the crypto exchange was denied a Markets in Crypto-Assets licence. The probe focuses on Binance's reliance on the reverse-solicitation exemption, which allows overseas providers to serve EU users only when those users independently seek the service. ESMA cautioned that the exemption should be applied strictly and not used to evade MiCA rules.

Several national authorities have requested information from Binance and warned that non-compliance could trigger fines or other enforcement actions. Binance responded that it is actively pursuing a MiCA licence and adheres to applicable regulatory standards in the jurisdictions where it operates. The outcome will determine whether the exchange can remain accessible to millions of European users.