EU Probes Binance Over Continued EU Operations Despite Wind-Down Order

The European Union (EU) is questioning Binance over its continued operations in the region despite an order to wind down its business. The world's largest cryptocurrency exchange lost permission to offer services to EU clients after its application under a new licence regime was rejected earlier this year.

Under the Markets in Crypto-Assets (MiCA) rules, crypto companies were required to obtain a license by the end of June to continue operating across the bloc. Binance used 'reverse solicitation', a legal exemption allowing companies based outside the EU to provide financial services to customers in the bloc if those users seek the relationship entirely on their own initiative.

Regulators are looking into Binance's use of this exemption, and some have requested information from the company. They could take enforcement action, including imposing fines, if they are not satisfied with Binance's response.

Binance said it is actively working towards becoming MiCA-authorised and complies with applicable regulatory requirements in the jurisdictions in which it operates.