EU Probes Binance Over Continued Operations Despite Cease-And-Desist Order
The European Union (EU) is scrutinizing Binance's operations after the cryptocurrency platform was ordered to cease activities in the bloc. EU officials have questioned Binance about its use of a legal exemption to continue serving customers despite an order to wind down its business.
According to the Financial Times, the European Securities and Markets Authority (ESMA) has directly contacted Binance to confirm that it is genuinely winding down operations rather than continuing under another guise. This move comes after Binance failed to secure authorization under the EU's Markets in Crypto-Assets Regulation (MiCA) by the July 1, 2026 deadline.
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 be qualified to operate in the EU from July. The reverse solicitation exemption, which allows companies outside the EU to provide financial services to customers if those users seek the relationship entirely on their own initiative, has been questioned.
Some regulators have requested information from the company and could take enforcement action, including imposing fines, if they are not satisfied with Binance's response. The company claims it complies with applicable regulatory requirements in the jurisdictions where it operates and is actively working towards becoming MiCA-authorised.