Crypto HeadlinesEU Regulators Investigate Binance Over Unlicensed Operations
European regulators have launched an investigation into Binance's activities due to its continued provision of services in the EU without a MiCA license.
Since July 1, crypto companies must cease operations if they have not obtained a license. However, the exchange continues to operate, citing the reverse solicitation exemption.
This rule allows serving clients who have independently requested services without any promotional solicitation.
ESMA and regulators from France, Germany, and Greece are examining the application of this exemption. Some authorities have already requested additional information from the exchange for verification.
Authorities want to ensure that clients genuinely approach the platform on their own initiative and that the exemption is not being used to circumvent MiCA rules.
If violations are identified, Binance faces potential fines.
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