Since the European Union's July 1 deadline for crypto licenses, the regulatory framework known as MiCA (Markets in Crypto-Assets Regulation) is revealing a fundamental principle: a crypto license does not grant automatic access to multiple markets.
Binance's visible test of this rule began when it withdrew its license application in Greece days before the deadline, then continued serving some European customers through reverse solicitation—a narrow exemption allowing clients who approach a foreign firm independently to trade. The exchange also routed trading through its Abu Dhabi entity, which holds a full license there.
The European Securities and Markets Authority (ESMA) has made its position clear: a firm based outside the EU may not serve or solicit EU clients, and a provider without an EU crypto license must wind down operations. ESMA has requested that Binance confirm it is doing exactly that.
How Reverse Solicitation and Offshore Licenses Fail at Scale
Article 61 of MiCA permits a firm without EU authorization to serve an EU client only when the service is provided at the client's exclusive initiative. ESMA interprets this exemption narrowly, treating almost any marketing reaching EU residents—from websites and apps to social media posts—as solicitation.
The Dutch Authority for the Financial Markets demonstrated this enforcement in September 2025, issuing a public warning that MEXC was serving Dutch consumers without a license. The regulator cited Dutch-language social media marketing and sponsorship of a local blockchain conference as evidence of targeting the Netherlands. MEXC is now exiting the Dutch market, with users required to move assets by October 31, 2026, and final offboarding set for November 16.
Despite the Dutch warning, MEXC has not added the Netherlands to its public list of restricted jurisdictions. This reflects how MiCA is enforced: the ban applies EU-wide, but decisions against specific firms are taken by national regulators.
Two Legal Routes for EU Market Access
For crypto businesses seeking to serve EU clients, two lawful paths exist: partnering with an already-authorized provider, or obtaining authorization independently.
The partnership route, often called white label, allows a business to build the product and brand while an authorized crypto-asset service provider (CASP) legally contracts with every client. This arrangement avoids the months required for independent authorization. Bitpanda operates crypto services within N26 and Austrian Raiffeisen bank apps, and announced a framework with Raiffeisen Bank International on September 23 to reach approximately 18 million customers across Central and Eastern Europe.
Independent authorization is slower. According to ESMA data, the number of listed crypto service providers grew from 243 just before the transition period ended to 349 by mid-September, with banks among them doubling to approximately 80. Banks have a shortcut under Article 60 of MiCA: they can notify their regulator with full documentation at least 40 working days before offering crypto services, without separate CASP authorization.
For crypto-native firms, authorization starts from zero, requiring months of preparation to establish a company in an EU member state, capital, governance, and anti-money laundering controls.
Territory-Specific Licensing Beyond Europe
The territorial licensing principle extends beyond Europe. More regulators tie license requirements to where clients live. Brazil requires providers already operating to file for authorization with the Central Bank by October 30, 2026, and foreign platforms serving Brazilian residents must move operations to an authorized institution by that date. Canada requires foreign money services businesses directing services at Canadians to register with FINTRAC before operating. El Salvador's National Commission of Digital Assets (CNAD) requires registration from foreign firms actively marketing to clients in the country.
However, each license opens only its issuing market. FINTRAC registration does not mean endorsement, and Canadian trading platforms dealing in securities or derivatives may also need to register with securities regulators. In Mauritius, virtual asset rules apply to business carried on in or from the island, meaning each target market retains its own requirements.
Regulatory Rules Continue Evolving
Crypto licensing structures drawn today will require revision as rules change. Kazakhstan brought crypto exchangers under National Bank licensing on May 1, 2026. Kyrgyzstan set a minimum capital of 300 million soms for crypto exchanges from July 1, 2026. Australia passed legislation requiring crypto platforms to hold an Australian Financial Services License (AFSL) from April 2027.
Brazil's filing deadline falls on October 30, and MEXC completes its Dutch offboarding on November 16. These developments are expected to push more global platforms toward country-by-country licensing strategies.
