ESMA and regulators in France, Germany, and Greece are reviewing how Binance uses the MiCA 'reverse solicitation' exemption to serve clients in the EU without authorization.

Binance relies on 'reverse solicitation'

The exemption allows non-EU providers to serve clients if those clients approach them on their own initiative. However, ESMA guidance emphasizes that this mechanism cannot be used to circumvent MiCA requirements. Until the end of the MiCA transition period on July 1, the company stated that access to services in the EU depends on the user's jurisdiction, account status, and the 'servicing entity.' Some EU traders are currently served through Binance's regulated structure in Abu Dhabi.

On September 18, Binance stated it continues to seek MiCA authorization and is focused on long-term operations in Europe on a compliant basis. In June, the exchange withdrew its MiCA application in Greece and said it would seek authorization in another EU country. The company did not confirm whether it is in talks with EU regulators, noting only that it complies with applicable requirements.

ESMA calls for increased oversight of non-residents

The regulator has proposed expanding its powers over non-EU companies that attract European investors without MiCA authorization, stating this would enable faster and more consistent supervisory responses and reduce opportunities for regulatory arbitrage. Previously, ESMA Chair Verena Ross noted a shift in MiCA focus 'from rulemaking to supervision and convergence.'

Binance not listed in ESMA's non-compliant register

The ESMA register of non-compliant providers grew from 164 entries on July 16 to 173 in the September 30 update. Binance is not listed. The register is incomplete and is updated based on data from national authorities and other sources. Germany's BaFin declined to provide details, citing legal confidentiality.