TL;DR:
- Binance continued serving and onboarding some EU customers after missing the July 1 MiCA deadline, relying partly on reverse solicitation and offshore routing.
- Some European users could still register and verify accounts, while trading for certain clients was routed through a Binance entity in Abu Dhabi.
- ESMA is examining Binance’s wind-down, but the exchange still held more than 45% of global spot crypto trading volume in late August overall.
Binance has continued serving and onboarding some European Union customers more than two months after missing the July 1 MiCA licensing deadline, using regulatory provisions and offshore routing while it works toward authorization elsewhere. The exchange appears to have preserved part of its EU business through a regulatory pathway rather than a full licensed presence. After withdrawing its Greek application on June 16, Binance entered July without the authorization needed for EU-wide operations. Its response has centered partly on reverse solicitation, a MiCA provision covering customers who approach an unlicensed provider independently.
That interpretation has allowed some new users to register even after regulators expected unauthorized firms to stop onboarding. Tests in Austria, France, Germany, Spain and Belgium found that users could complete registration and identity verification, while active accounts still accepted crypto deposits. The unusual result is a fragmented European footprint where access depends heavily on how and where a customer reaches Binance. Some trading for EU-based clients has also been routed through a Binance entity in Abu Dhabi. Meanwhile, customers in several markets previously received notices asking them to leave, with many accounts limited to withdrawals.
MiCA Pressure Keeps Binance’s European Future Unsettled
European regulators are watching that arrangement. ESMA has sought confirmation that Binance is properly winding down unauthorized EU operations, while national regulators remain responsible for sanctions tied to non-compliance. Reverse solicitation now sits at the center of the tension because the exemption depends on users initiating contact without being targeted by the provider. MiCA specialist Nina-Luisa Siedler noted that lacking a license does not automatically require every European customer account to be closed under MiCA’s transition framework. Even so, restrictions remain uneven, including the loss of trading access for users in France after July 1.
Remarkably, the regulatory setback has not meaningfully weakened Binance’s broader trading position. Kaiko data showed the exchange controlled more than 45% of global spot crypto volume in late August, while its euro-denominated share remained between 3% and 4%. Binance therefore enters its next licensing attempt with market strength intact but regulatory certainty still unresolved. The exchange says it remains committed to operating in the EU on a long-term, compliant basis and is actively pursuing MiCA authorization elsewhere, although it has not publicly identified which member state may currently handle its next application for EU passporting.
