European regulators need more powers to police crypto, watchdog says
Regulators say some firms may be using a narrow exemption to keep serving EU customers without MiCA authorization, and enforcement action could follow.
- On Thursday, October 1, 2026, the European Securities and Markets Authority and national regulators launched an investigation into Binance's use of "reverse solicitation," a legal exemption allowing non-EU firms to serve European customers only when clients initiate the relationship.
- Binance failed to secure authorization after withdrawing its Greek application following the July 1 MiCA transition deadline; regulators expected the exchange to take "immediate steps" to wind down European business operations.
- Tests in August revealed Binance was still opening EU accounts seven weeks after the cutoff, though the company told the Financial Times it "complies with applicable regulatory requirements" while "actively working toward becoming MiCA-authorised."
- National regulators have requested information from the exchange and could impose fines if unsatisfied, while ESMA seeks expanded powers to freeze assets linked to criminal activity.
- Scrutiny of the exemption remains a priority for ESMA in 2027, alongside operational resilience, adding to Binance's regulatory history that includes a $4.3bn penalty in the U.S. in 2023 for money laundering violations.
45 Articles
45 Articles
EU watchdogs question Binance over unlicensed European operations
European regulators are questioning Binance over its use of a narrow legal exemption to keep serving EU customers without a licence, the Financial Times reported. Binance told Euronews it is working towards authorisation, while ESMA said enforcement is a matter for national authorities.
Can Binance keep serving EU customers without a MiCA license?
Binance is facing scrutiny from European regulators over its use of a MiCA exemption to continue serving some EU customers after entering July without authorization to operate across the bloc. According to a Financial Times report on Oct. 1, the…
European Union regulators are investigating whether crypto exchange Binance is legally exploiting a loophole to serve EU clients after its application for a MiCA license was rejected, the Financial Times has learned. Similar topics will be discussed at the Portfolio Banking Technology conference on November 10. Registration and details here!
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