ESMA MiCA warning puts Binance EU service changes under scrutiny
ESMA said EU and EEA crypto customers must be served through a MiCA-authorized legal entity after the July 1 transition deadline. Under MiCA, protections apply only to the EU-licensed entity, and non-EU crypto service providers cannot market or provide services to EU clients unless they qualify for the narrow “reverse solicitation” exemption, meaning the client initiated contact on their own with no solicitation, advertising, or promotion by the firm. ESMA cited examples of prohibited solicitation such as websites, apps, social media, online ads, sponsorships, and influencer campaigns aimed at EU users. The clarification adds pressure on global exchanges like Binance, which has been adjusting services in some EU countries during its MiCA transition. Legal commentary said an Abu Dhabi license does not satisfy MiCA because it is still a third-country setup for EU purposes.
