Binance CEO Richard Teng stated on the official X account on July 1 that during the EU MiCA regulatory transition period, user assets remain secure, and affected users can continue to use the options they have been informed of (including withdrawal functions) after July 1; Binance is directly communicating with affected users regarding next steps and available options. Binance has notified users in Poland, France, Spain, and Italy about service adjustment arrangements.
Key Points of Richard Teng’s Statement and Affected EU Countries
Richard Teng’s statement on X includes the following core messages: user assets are safe; after July 1, affected users can continue to use the options they have been informed of (including withdrawals); Binance is directly contacting affected users to explain next steps; users with account issues should contact Binance customer support through official channels; the team's focus is on "providing clear guidance, service continuity, and confidence to users."
Binance stated that adjustments have involved EU countries including Poland, France, Spain, and Italy; for jurisdictions where Binance operates through locally registered entities, Binance said "no action is currently required."
ESMA’s MiCA Requirements and Article 61 Reverse Solicitation Exemption Conditions
An ESMA spokesperson told CoinTelegraph that CASPs must hold a MiCA authorization to legally serve EU and European Economic Area clients, "the protections of MiCA only apply to legal entities licensed in the EU." Article 61 allows non-EU companies to serve EU clients without holding a MiCA license, but subject to the following conditions:
Entirely client-initiated: The service relationship is initiated by the client’s own contact, with no solicitation by the company.
Prohibition of solicitation activities: Marketing, advertising, or promotion renders the exemption inapplicable.
ESMA's definition of solicitation: Covers websites, apps, social media, advertisements, sponsorships, and influencer marketing targeting EU users.
Explicit exclusion: If a third-country company has solicited clients in the EU, it cannot invoke this exemption.
Legal Challenges to the Abu Dhabi Service Model: Binance Has Not Responded
Social media screenshots show that Binance customer service appeared to indicate that some EU users could be served through its Abu Dhabi Global Market (ADGM) entity. Lawyer Yuriy Brisov (Digital & Analogue Partners) pointed out that an ADGM license is ineffective under the MiCA framework because Abu Dhabi is considered a third country by the EU, and serving EU clients via an ADGM entity equates to a non-EU company providing services directly.
Brisov stated that the Article 61 reverse solicitation exemption is designed for individual cases, not for maintaining an existing client base built through years of marketing. CoinTelegraph repeatedly asked Binance to clarify whether any EU users were being served via the ADGM entity after the MiCA deadline, and Binance had not responded as of the time of reporting.
Frequently Asked Questions
What should Binance users in Poland, France, Spain, and Italy do after the MiCA transition period ends?
According to Richard Teng’s statement, affected users can continue to use the options they have been informed of (including withdrawal functions), and Binance says it is directly contacting these users to explain available options and next steps. Users with account issues should contact Binance customer support through official channels.
What are the core conditions for applying the Article 61 reverse solicitation exemption?
ESMA clearly states that the exemption requires the service relationship to be entirely voluntarily initiated by the client, with no form of solicitation or marketing by the company. ESMA’s definition of solicitation covers websites, mobile apps, social media, advertisements, and influencer marketing activities targeting EU users; any such activities disqualify the exemption.
Is Binance’s use of the ADGM entity to serve EU clients compliant, and what is the current official explanation?
Lawyer Yuriy Brisov stated that an ADGM license is ineffective under the MiCA framework, and serving EU clients via an ADGM entity is considered a non-EU company providing services under EU law. Binance had not made any response to CoinTelegraph on this matter as of the time of reporting.
