EU questions Binance's continued operations after being asked to exit business.

BlockBeats news, October 1st, according to the Financial Times, Binance failed to obtain the EU MiCA license this summer but continues to serve EU customers using the "reverse solicitation" legal exemption. The European Securities and Markets Authority (ESMA) and regulators in France, Germany, Greece, and other countries are reviewing its use of this exemption, with some regulators having requested information from Binance.

Under EU rules, unlicensed crypto companies should have immediately begun exiting EU operations from July 1st and stopped providing services except to assist customers in transferring or selling their holdings. "Reverse solicitation" allows companies outside the EU to provide services when customers fully proactively seek them out, but ESMA emphasizes that the exemption's scope is very narrow and must not be used to circumvent MiCA requirements. People familiar with the matter said that if Binance's response fails to satisfy regulators, they may take enforcement measures such as fines.

Binance stated that it complies with applicable regulatory requirements in the jurisdictions where it operates and continuously reviews and adjusts its products and services to meet relevant obligations. The company said it is actively seeking MiCA authorization, viewing it as an important step toward providing unified, regulated, and trustworthy services to European users.