Binance Faces EU Regulatory Probe Over Unlicensed Services
Binance, the world's largest cryptocurrency exchange, is facing a regulatory probe from European authorities over its continued servicing of EU customers.
The investigation centers around Binance's use of the 'reverse solicitation' exemption, which allows companies outside the EU to provide services to bloc residents when those customers have approached them on their own initiative.
Binance failed to obtain a license under the Markets in Crypto-Assets Regulation (MiCA) and was required to cease operations in the EU by July 1. Unlicensed companies were only allowed to serve existing customers for transferring or selling their assets, not providing new services.
The European Securities and Markets Authority (ESMA), along with national regulators from France, Germany, and Greece, are examining Binance's compliance with MiCA requirements.