EU Scrutinizes Binance Over Continued Operations Despite Wind-Down Order

The European Union is scrutinizing Binance's continued operations in the region despite an order to wind down its business, according to the Financial Times. The company, which holds the largest market share in cryptocurrency exchanges, lost permission to offer services to EU clients after its application under a new licence regime was rejected earlier this year.

The new EU rules, called Markets in Crypto-Assets (MiCA), require crypto companies to obtain a license by the end of June to continue operating across the bloc. Without a licence, Binance would not qualify to continue operating in the EU from July.

The European Securities and Markets Authority (ESMA) is investigating Binance's use of '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.

Some regulators have requested information from the company, which could lead to enforcement action, including imposing fines.