Binance Faces EU Scrutiny Over Continued Operations
The world's largest cryptocurrency exchange, Binance, is facing scrutiny from EU officials over its decision to continue operating in the region despite an order to wind down its business. According to a report by the Financial Times, Binance has been using a legal exemption called 'reverse solicitation' to provide services to EU customers.
Under new EU rules, crypto companies were required to obtain a license by the end of June to continue operating across the bloc. Without a license, Binance would not qualify to continue operating in the EU from July. However, the company has claimed it is 'actively working towards becoming MiCA-authorised'.
EU officials have questioned Binance's use of the reverse solicitation exemption and could take enforcement action, including imposing fines, if they are not satisfied with the company's response. The European Securities and Markets Authority (ESMA) told the FT that the exemption should be used 'very narrowly framed' and not to circumvent MiCA requirements.