Binance Under Fire for Continuing European Operations Without License

European regulators are scrutinizing Binance Holdings Ltd.'s operations in Europe after it failed to secure a Markets in Crypto-Assets Regulation license in Greece. The Financial Times reported that despite this, Binance has continued to onboard European customers under a 'reverse solicitation' provision.

This provision allows clients to seek out overseas financial providers independently. Regulators from the European Securities and Markets Authority, France, Germany, and Greece are now investigating Binance's use of this rule.

Under EU crypto rules, unlicensed entities were required to wind down their local businesses by July 1 this year. Binance claims it complies with applicable regulations in the jurisdictions where it operates.

The company is working towards becoming MiCA-authorized and has faced regulatory challenges before. In 2023, Binance agreed to pay $4.3 billion in fines and penalties in the US for inadequate anti-money laundering controls.