European Union regulators are questioning cryptocurrency exchange Binance over its continued service to customers in the bloc despite an order requiring it to wind down its EU operations, the Financial Times reported on Thursday.

The scrutiny centres on “reverse solicitation”, a legal provision allowing companies outside the European Union to provide certain financial services when customers independently approach them rather than being actively targeted.

The European Securities and Markets Authority (ESMA), alongside national regulators, is examining whether Binance’s reliance on the exemption complies with the bloc’s Markets in Crypto-Assets (MiCA) framework.

Binance, the world’s largest cryptocurrency exchange, failed to obtain a MiCA licence. Under the rules, firms without the required authorisation were expected to begin winding down their EU businesses from July 1, 2026. They are generally expected to stop serving customers, apart from activities needed to help users transfer or sell their crypto holdings.

ESMA has stressed that reverse solicitation should be narrowly applied and not used to avoid MiCA requirements. Regulators are examining whether Binance continued serving some European customers under the provision, and some national authorities have reportedly requested information from the exchange. If they are not satisfied with its explanation, enforcement measures, including possible fines, could follow, according to the report.

The inquiries come as European authorities increase oversight of cryptocurrency platforms. MiCA was introduced to establish common rules for crypto-asset service providers and strengthen regulatory supervision across the EU.

Binance said it complies with regulatory requirements in the jurisdictions where it operates. The company also said it is working towards obtaining MiCA authorisation and reviewing its products and services to ensure they align with applicable regulations.

The exchange previously held local licences in several European countries, including France, Spain and Poland, but those arrangements have been affected by the transition to the EU-wide system.

The latest questions add another challenge for Binance as European authorities assess how crypto companies can serve customers under the bloc’s regulatory framework.