EU Regulators Probe Binance’s MiCA Exemption for EU Services

EU regulators are testing whether Binance relied on a narrow Markets in Crypto-Assets (MiCA) exemption to keep serving some European customers without a license, a case that could bring fines or enforcement.

The European Securities and Markets Authority (ESMA), along with regulators in France, Germany and Greece, is reviewing whether Binance met the exemption’s conditions. Some regulators have requested information from the exchange.

Reverse solicitation applies when customers independently seek services from a foreign crypto firm. ESMA has said the exemption should be used narrowly and cannot serve as a way to avoid MiCA requirements.

Binance failed to secure a MiCA license during the summer but continued providing services to some European Union customers under the exemption. If regulators reject the exchange’s explanation, they may pursue fines or other enforcement measures.

The MiCA transition period ended July 1, 2026. In principle, crypto service providers without authorization must stop serving EU customers after that date.