The European Securities and Markets Authority (ESMA) warned that crypto clients in the EU must be served through a MiCA-authorized entity, putting pressure on global exchanges like Binance to adjust t
In June 2026, the European Securities and Markets Authority (ESMA) issued a warning that EU crypto clients must be served through an entity authorized under the Markets in Crypto-Assets Regulation (MiCA). This directive adds to the complexities faced by global exchanges like Binance as they navigate MiCA's transitional deadline.
Binance recently announced adjustments to its services in certain EU countries, including Poland, France, Spain, and Italy. The company stated that users in other regions without a local registered entity would not need to take any action at this time. However, ESMA’s clarification highlights the narrow conditions under which non-EU crypto companies can serve EU clients.
According to Article 61 of MiCA, non-EU crypto asset service providers (CASPs) are allowed to provide services only if initiated exclusively by the client without any solicitation from the company. This exemption does not apply when a third-country firm actively seeks out or markets its services in the EU.
This regulation has raised concerns about Binance’s Abu Dhabi Global Market entity, with some users appearing on social media as potentially serviced through this model. Legal expert Yuriy Brisov emphasized that an Abu Dhabi license is insufficient under MiCA, since it treats the jurisdiction as a third country alongside others like the U.S. or Singapore.
The implications of ESMA’s warning are significant for Binance and other global exchanges operating in Europe. Non-compliance could result in legal challenges from regulators, leading to potential service disruptions and financial penalties. Traders should closely monitor how these changes affect their trading activities within EU jurisdictions.
As MiCA continues to shape the regulatory landscape of crypto assets across Europe, traders must stay informed about ongoing developments that may impact their operations.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.