European regulators are examining how Binance continues to serve crypto customers across the European Union without authorization under the bloc's Markets in Crypto-Assets regulation, according to a Euronews report published Thursday, citing the Financial Times.

The European Securities and Markets Authority (ESMA) and national authorities in France, Germany and Greece are among the bodies scrutinizing the arrangement. Some regulators have already requested information from Binance, and enforcement measures — potentially including financial penalties — could follow if authorities conclude the company has breached applicable rules.

Why is Binance under scrutiny?

The review centers on Binance's reliance on a narrow exemption known as "reverse solicitation," which allows a firm outside the EU to provide services only when a customer approaches it entirely on their own initiative. The question for regulators is whether Binance's use of the exemption fits within its strict boundaries.

ESMA told the Financial Times that the provision should be interpreted narrowly and treated as an exception rather than a means of avoiding MiCA obligations. The Netherlands Authority for the Financial Markets made a similar point, telling the newspaper that crypto companies cannot rely merely on asserting that customers approached them independently and must satisfy specific requirements.

Companies without MiCA authorization were expected to begin winding down EU operations from July 1, with continued service generally limited to helping existing customers dispose of or transfer their crypto assets, Euronews reported.

What happened to Binance's EU licenses?

Binance failed to obtain MiCA authorization before the end of the regulatory transition period. The company had sought authorization in Greece but withdrew that application earlier, saying it intended to pursue authorization through another EU member state instead, Euronews reported in June.

Binance's previous national registrations and licenses in EU countries including France, Spain and Poland have lapsed under the MiCA framework. Some European customers are now served through the exchange's Abu Dhabi entity, which has been regulated there since December 2025.

Despite the transition, the service experienced by Binance's European customers has remained largely unchanged since the July deadline, according to Euronews. In markets where Binance lacks a local license, the company operates on the basis that customers are approaching it independently, the Financial Times reported, citing a person familiar with the matter.

Binance did not directly address regulators' inquiries when contacted by Euronews. "We comply with regulatory requirements in the jurisdictions where we operate and remain committed to establishing a long-term business in Europe under MiCA," a company stance conveyed to the publication indicated, with a spokesperson adding that the exchange is actively seeking MiCA authorization.

Who could enforce against Binance?

ESMA declined to discuss Binance specifically. The agency said supervision, investigations and enforcement under MiCA fall to national regulators, while its own role covers coordinating supervisory practices, encouraging cooperation among national authorities and issuing guidance.

That division of authority means any enforcement action against Binance would come from national regulators rather than ESMA itself. Regulators are also examining the practices of some smaller cryptocurrency companies, Euronews reported.

The dispute marks an early test of how European authorities will enforce MiCA's restrictions on companies operating from outside the bloc. For Binance, the outcome could determine how it is permitted to serve one of the world's largest cryptocurrency markets while it pursues the EU authorization needed for a permanent presence.

The immediate question is whether any of the national regulators involved moves from information requests to formal enforcement — and whether Binance files a fresh MiCA application in a new member state before regulators conclude that reverse solicitation cannot sustain its European operations.