Binance Faces EU Scrutiny Over Unlicensed Operations

European Union officials are questioning Binance Holdings Ltd., a major cryptocurrency exchange, over its continued operations in Europe despite failing to secure a license earlier this year.

The Financial Times reported that Binance, after being unable to obtain a Markets in Crypto-Assets Regulation (MiCA) license in Greece, has been onboarding European customers under a 'reverse solicitation' provision. This allows clients to independently seek out overseas financial providers.

The inquiry comes weeks after Bloomberg News reported on Binance's continued operations despite the licensing issue. The MiCA regulation is a key piece of legislation aimed at regulating the crypto-asset market in Europe.