EU Regulators Question Binance Over Continued Operations

Binance, the world's largest cryptocurrency exchange, is facing scrutiny from European Union regulators over its continued operations in Europe despite being ordered to wind down its business for failing to obtain a license under the MiCA regime.

The EU's Markets in Crypto-Assets (MiCA) regime requires exchanges to obtain a license to operate in the bloc. Binance claims it is working towards obtaining this license, but regulators are questioning its use of a 'reverse solicitation' exemption that allows non-EU financial firms to serve customers who initiate contact.

Regulators in France, Germany, and Greece have examined Binance's use of the exemption and sought information from the exchange. They could impose fines or take further action if they conclude Binance is operating outside the scope of the exemption.

Binance has stated it complies with applicable requirements in jurisdictions where it operates. The dispute highlights the need for clear guidelines on reverse solicitation under MiCA to prevent firms without EU-wide authorization from continuing to serve European customers through exemptions intended for limited, customer-initiated relationships.