EU questions Binance over continued operations despite wind-down order: Report

EU officials are scrutinizing Binance for maintaining operations in the region despite a directive to discontinue its services, according to a report by the Financial Times on October 1. The exchange, which is the world's largest cryptocurrency platform, lost the right to serve EU users after its application for a new license under the Markets in Crypto-Assets (MiCA) regime was rejected in early 2026, potentially jeopardizing access for millions of users.

According to the new EU rules, crypto firms must acquire a license by the end of June to continue operating across the bloc. Without authorization, Binance would not be permitted to operate within the EU starting in July. The European Securities and Markets Authority (ESMA) and national regulators are investigating Binance's utilization of the "reverse solicitation" legal exemption, a provision permitting non-EU-based companies to offer financial services to EU customers if those users seek the relationship independently.

ESMA clarified to the FT that the reverse solicitation exemption is narrowly defined and should not be misused to bypass MiCA requirements. Regulatory authorities have reached out to Binance for additional information, and may impose penalties, such as fines, should they find the company's response unsatisfactory. Binance has responded, stating it is actively pursuing MiCA authorization and is committed to adhering to all regulatory obligations in the jurisdictions where it operates.

However, the credibility of the report remains unverified by Reuters, and Binance and ESMA have not yet provided a response to Reuters' inquiries for comment.