European Union (EU) regulatory authorities are investigating whether Binance, which must scale back its operations in the region due to its failure to secure an EU MiCA license, is continuing to provide services by utilizing the 'reverse solicitation' exception, the Financial Times (FT) reported. According to EU regulations, virtual asset service providers that have not obtained a MiCA license must immediately reduce their operations in the region from July 1 and cease providing services, except for the purpose of assisting customers with virtual asset transfers or sales. It is reported that the European Securities and Markets Authority (ESMA) and regulatory authorities from various countries, including France, Germany, and Greece, have requested relevant data from Binance. If regulatory authorities do not accept Binance's explanation, there is a possibility that sanctions such as fines could be imposed. Binance stated that it "complies with the regulatory requirements of each jurisdiction in which it operates" and is continuously reviewing its services and products in line with relevant obligations. It also added that it is actively working to obtain a MiCA license.
