European regulators aren’t messing around with MiCA compliance. ESMA made it clear this week: EU crypto clients must be served through a MiCA-authorized entity after the July 1 transitional deadline.
The statement puts Binance in an awkward spot. The exchange recently told users in Poland, France, Spain, and Italy that it was adjusting services as part of its MiCA transition. But it also suggested some users wouldn’t need to take action — raising questions about who’s actually servicing them.
Here’s the problem. ESMA said non-EU crypto companies can only serve European clients without a MiCA license under a narrow “reverse solicitation” exemption. That means the customer has to initiate the relationship entirely on their own — no marketing, no promotion, no solicitation of any kind.
Yuriy Brisov, a lawyer at Digital & Analogue Partners, didn’t mince words: “Being regulated in Abu Dhabi does nothing for Binance under MiCA.” If Binance is routing EU users through its Abu Dhabi entity, that’s a non-EU company serving European clients — and that doesn’t fly under the new rules.
ESMA’s guidelines list what counts as solicitation: websites, mobile apps, social media, online advertising, sponsorships, influencer campaigns targeting EU users. Basically, if you’re visible to Europeans, you’re soliciting.
Binance didn’t respond to requests for clarification. The clock’s ticking.
