Binance Faces EU Regulatory Probe Over MiCA Compliance
Binance, one of the world's largest crypto exchanges, is under scrutiny from European regulators. The European Securities and Markets Authority (ESMA) is reviewing Binance's compliance with the Markets in Crypto-Assets (MiCA) regulation.
The MiCA regulation requires companies to have authorization by the end of June to continue offering services. However, Binance entered July without a MiCA license after its authorization attempt in Greece ended in June.
The ESMA is checking whether Binance has relied properly on the reverse solicitation exemption under MiCA. This exemption allows companies to provide services to customers who independently seek them out from outside the European Union.
The regulator wants to know if Binance has used the exemption to circumvent MiCA requirements and continue activities that normally require authorization. If the exchange fails to provide clarity on the matter, it could lead to further actions from the authority, including fines.