EU regulators question Binance over unlicensed operations in Europe

EU officials are questioning Binance Holdings about its unlicensed operations in Europe, Bloomberg reports. The inquiry turns on a narrow legal exemption that Binance may be relying on to keep European customers on its platform. Several regulators are involved. The European Securities and Markets Authority (ESMA) is examining the matter alongside authorities from France, Germany and Greece. Their focus is whether Binance Holdings Ltd. kept providing services to EU customers without holding a license under the Markets in Crypto-Assets framework, known as MiCA. The scrutiny was summarized in an October 1, 2026 report by the Financial Times. The loophole at the center of the inquiry MiCA is the EU’s licensing regime for crypto service providers. Firms that want to serve customers across the bloc are expected to hold authorization under it. The rules do include an exception. Article 61 of MiCA sets out what is known as the “reverse solicitation” exemption. It lets firms based outside the EU serve clients who seek them out on their own initiative. Regulators are now probing whether Binance’s reliance on that exemption holds up. ESMA has indicated that reverse solicitation should be unde...