ESMA Asks Binance to Confirm Wind-Down as It Served EU Clients Without a Licence
CoinGape reports Binance pulled its Greek licence application before the 1 July EU deadline, served some European clients via reverse solicitation, and that ESMA asked it to confirm a wind-down.
Why it matters
If ESMA applies the guideline the way CoinGape describes it, a crypto licence issued in one market gives no standing in another, so an exchange without EU authorisation can reach EU customers only through narrow exemptions such as reverse solicitation. Whether Binance complies is unresolved in the available reporting, and no second outlet has confirmed the regulator's position or the exchange's reply.
Key facts
The EU deadline for crypto licences fell on 1 July.
Reported by CoinGape
Binance withdrew its licence application in Greece days before that deadline.
Reported by CoinGape
Binance kept serving some European customers through reverse solicitation, the exemption covering clients who approach a foreign firm on their own initiative.
Reported by CoinGape
Binance routed part of the European trading through its Abu Dhabi entity, which the ADGM website lists as holding a full licence there.
Reported by CoinGape
ESMA has a MiCA guideline stating that a firm based outside the EU may not serve or solicit EU clients and that a provider without an EU crypto licence has to wind down.
Reported by CoinGape
ESMA asked Binance to confirm that it is winding down its unauthorised European business.
Reported by CoinGape
CoinGape argues that every durable route to EU clients runs through an authorised European provider, either the company's own or a partner's.
Reported by CoinGape
What happened
CoinGape, in a column by Sneha Agrawal, reports that Binance withdrew its licence application in Greece days before the European Union's 1 July deadline for crypto licences and kept serving some European customers through reverse solicitation, an exemption for clients who approach a foreign firm on their own initiative. The outlet says Binance routed part of that trading through its entity in Abu Dhabi, which the ADGM website lists as holding a full licence there. CoinGape also states that ESMA has a MiCA guideline under which a firm based outside the EU may not serve or solicit EU clients, and a provider without an EU crypto licence has to wind down. ESMA has since asked Binance to confirm that it is doing exactly that, and the evidence contains no answer from the exchange. Only CoinGape has covered this, so the licence status of the Abu Dhabi entity and Binance's response to the regulator rest on that single outlet's account.
How the story developed
- First report
First report by CoinGape
Three Months Into MiCA, One Rule Is Clear: A Crypto Licence Covers Only the Market That Issued It
- Official statement
EU crypto licence deadline
CoinGape dates the EU deadline for crypto licences to 1 July.
- Update
Binance withdraws Greek application
Binance pulled its licence application in Greece days before the deadline.
- Update
Trading routed through Abu Dhabi entity
Part of Binance's European trading went through its Abu Dhabi entity, which the ADGM website lists as fully licensed there.
- Official statement
ESMA asks Binance to confirm wind-down
ESMA asked Binance to confirm it is winding down business that lacks an EU licence.
Affected entities
Also mentioned: Bybit
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CoinGape Crypto media | Three Months Into MiCA, One Rule Is Clear: A Crypto Licence Covers Only the Market That Issued It | Original |
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