The European Securities and Markets Authority (ESMA) has signaled that reverse solicitation—an exemption under Article 61 of the Markets in Crypto Assets Regulation (MiCA)—must be interpreted narrowly. While the provision allows non-EU firms to serve clients who initiate contact without prior marketing, regulators warn it cannot serve as a workaround for formal authorization. If authorities determine that Binance’s activities constitute active solicitation, the exchange could face enforcement actions and significant fines.
In section Cryptocurrency
EU Regulators Challenge Binance Over Reverse Solicitation Tactics
European authorities are scrutinizing whether Binance is misusing the "reverse solicitation" loophole to maintain services for EU customers. Following a missed deadline for MiCA licensing in July, regulators are now questioning if the exchange actively targets users in the bloc rather than waiting for them to approach independently.
Binance entered July without the required crypto asset service provider authorization after withdrawing a licensing application in Greece. Despite this, tests in August revealed that the platform continued to onboard new users and facilitate deposits in several European countries. The exchange maintains that it operates in compliance with local regulations and is actively working toward full MiCA authorization. As ESMA prepares for a more rigorous enforcement phase, the outcome of this inquiry will likely establish a precedent for how third-country crypto entities navigate the bloc’s evolving regulatory landscape.
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