European regulators are investigating whether Binance Holdings Ltd. continued to provide services to EU customers without the required MiCA license. The inquiry involves the European Securities and Markets Authority alongside national authorities in France, Germany, and Greece.
The investigation focuses on the 'reverse solicitation' exemption under Article 61 of the MiCA framework. This rule allows non-EU firms to serve clients who initiate contact independently, but regulators are now questioning if Binance's reliance on this provision is legally sound.
Binance asserts that it complies with current regulations and is actively working to obtain MiCA authorization. The company previously restricted new client onboarding and limited services in various EU member states following earlier regulatory concerns regarding money laundering controls.
The exchange previously paid a $4.3 billion fine in the United States in 2023 for anti-money laundering violations. European regulators are now evaluating whether similar issues persist, which could result in further fines or forced service restrictions for the platform.
