Can Binance keep serving EU customers without a MiCA license?

What happened

Binance is facing scrutiny from European regulators over its use of a MiCA exemption to keep serving some EU customers after entering July without authorization to operate across the bloc. ESMA and national regulators are examining whether the exchange relied properly on reverse solicitation, according to a Financial Times report on Oct. 1. The provision covers users who approach a company entirely on their own initiative.

Reverse solicitation sits in Article 61 of the Markets in Crypto Assets Regulation. It depends on the customer starting the relationship without advertising, promotions or other solicitation by the overseas provider. ESMA said the exemption should be understood as very narrowly framed and should not be used to circumvent MiCA requirements.

Regulators in France, Germany and Greece are involved, and some have requested information from Binance. They could pursue enforcement measures, including fines, if the exchange's explanation does not satisfy them. Binance said it is actively working toward becoming MiCA-authorised and complies with applicable regulatory requirements where it operates.

Why it matters

This regulatory action is expected to serve as the first major test of how MiCA's exemption provisions are applied in practice. If supervisors narrow the scope of reverse solicitation, other overseas firms serving EU customers could face similar questions.

The timing adds pressure. ESMA is preparing to move into the enforcement phase of MiCA supervision, and supervisors have listed reverse solicitation among their 2027 priorities.

Background

• Binance first pursued a license through Greece but withdrew its application in June after high-level political intervention and central bank opposition, then shifted its focus to operating via the UAE.
• Crypto.news reported in September that the exchange used reverse solicitation provisions to keep serving some European customers while it searched for a path to authorization.
• Some trading involving EU customers was routed through a Binance entity in Abu Dhabi, and customers who approached the platform independently could be onboarded under Binance's reading of the exemption.
• ESMA said Binance kept allowing new account openings in some European markets even after it withdrew its application through Greece in June.
• Binance stopped offering crypto trading services in France after failing to obtain a MiCA license, and French users were only allowed to withdraw their crypto assets.

What is still unclear

• The central unresolved question is whether the customer relationships Binance has maintained or accepted meet the conditions required for reverse solicitation.
• It is not yet clear what enforcement measures regulators might take, or when, beyond the possibility of fines.
• It is also unclear how supervisors will treat account openings accepted after Binance withdrew its Greek application.

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