After the MiCA transition period ended, Binance continued to serve some users in the European Union through the reverse solicitation mechanism, without holding a European license.

The reverse solicitation mechanism allows a company outside the EU to serve a European client without a MiCA license if the user initiates the service request and the exchange has not solicited the client through advertising.

Some Clients Served Through Abu Dhabi Entity

Some Binance clients in the EU are currently served through a related entity in Abu Dhabi.

ESMA Calls for Narrow Application of the Exception

European regulators have requested explanations from Binance; ESMA believes the exception should be applied very narrowly and cannot become a way to broadly bypass MiCA requirements. At this time, there is no official ban or fine for Binance.