European Union officials are scrutinizing Binance Holdings Ltd.'s operations on the continent after the company failed to secure a license. According to a report by the Financial Times, Binance's continued presence in Europe has raised concerns among EU officials.
The issue stems from Binance's inability to acquire a Markets in Crypto-Assets Regulation license in Greece, which it had sought earlier this year. Despite this setback, Binance has continued to onboard European customers under a 'reverse solicitation' provision, which allows clients to independently seek out overseas financial providers.
This provision has been criticized for potentially allowing unlicensed operators to bypass regulatory requirements. EU officials are now questioning Binance's compliance with European regulations and its ability to continue operating on the continent.
The inquiry comes weeks after Bloomberg News reported on Binance's use of the 'reverse solicitation' provision to onboard European customers. This move has sparked concerns about the company's commitment to regulatory compliance and its ability to operate in a transparent manner.