What Is Reverse Solicitation Under MiCA, and Can an Unlicensed Exchange Serve EU Clients?

Reverse solicitation is an exception in the MiCA regulation: a third-country firm may serve an EU client without a European licence if the client approached it purely on the client's own initiative. A firm cannot build its service to the European market on it. The EU regulator ESMA calls the exception very narrow, and a client who uses it is left without the protection MiCA provides.

Where does the exception come from, and what does it say?#

MiCA requires that crypto services for clients in the EU be provided by authorised firms. The transitional period for existing firms ended on July 1, 2026. Article 61 of the regulation makes one carve-out: where a client located in the EU initiates the service from a third-country firm, the authorisation requirement does not apply to that service.

The carve-out has an edge. A firm that gained a client this way may not then offer that client new types of crypto-assets or services. ESMA's guidelines allow offering assets or services of the same type the client asked for, and only in connection with the original request. According to EY's summary, a client's request holds for a limited time, about one month, after which the firm would need to show again that the initiative comes from the client.

What does ESMA treat as solicitation?#

Almost anything that resembles promotion. In the final report on the guidelines, ESMA takes a broad and technology-neutral reading: solicitation is any communication, in any form and on any medium, that promotes or offers crypto services to clients in the EU. That covers advertising, sponsored content, influencer endorsements, and material on a website, in an app and on social media.

Who is acting counts too. Solicitation by third parties working on the firm's behalf is included.

Wording in the paperwork does not help. A firm cannot point to a standard clause or to a checkbox in which the client confirms coming unprompted. The regulator looks at the facts: whether there was advertising, which languages the site runs in, how the client learned about the firm.

Why did this come up in October 2026?#

On October 1 the Financial Times reported that ESMA and national regulators in France, Germany and Greece are examining how Binance relies on reverse solicitation, as relayed by Unchained. The exchange did not obtain a MiCA licence by July 1. According to Crowdfund Insider, it withdrew an application in Greece in late June, and earlier national permissions in France, Spain and Poland lapsed as the single regime took over.

ESMA said the exception should be treated as "very narrowly framed" and must not be used to circumvent MiCA. The Dutch regulator AFM added that service providers "cannot simply claim" reverse solicitation. Binance replied that it complies with applicable requirements and is working toward MiCA authorisation. If the exchange's answers do not satisfy the regulators, enforcement action including fines is possible. Other, smaller firms are also under review.

The question is wider than one exchange. Any unlicensed foreign venue with clients in the EU relies on the same exception, and the same criteria apply to it.

What does this mean for a client in the EU?#

A client who approaches a foreign venue unprompted breaks no law: the authorisation requirement is addressed to the firm. But the client steps outside MiCA's protection. European rules on safekeeping of client assets, disclosure, complaint handling and capital do not apply to such a firm, and no EU regulator supervises its operations.

There is a practical risk as well. If a regulator concludes that the firm did solicit clients and the exception does not apply, the firm may restrict services for EU residents or close their access. In that case the firm itself sets the timing and procedure for withdrawals.

What limits and risks should you keep in mind?#

• The outcome of the review is unknown. As of October 1, 2026, there are regulators' questions and no findings of a breach.
• ESMA's guidelines describe the supervisors' approach. In a disputed case a court gives the final reading of Article 61.
• The time limit on a client's request is given here from a consultancy's summary. Exact wording should be checked against the guidelines.
• A MiCA licence lowers a number of risks. It does not protect against trading losses or a fall in asset prices.
• This article is not legal advice. Rules for residents of other jurisdictions differ.