European regulators are investigating Binance's use of a legal exemption that has allowed the cryptocurrency exchange to continue operating in the region despite being ordered to wind down its business after failing to obtain a license, the Financial Times reported Thursday (Oct. 1).
Under the European Union's Markets in Crypto Assets (MiCA) regulation, unlicensed crypto firms were required, as of July 1 of this year, to take immediate measures to wind down their EU business.
According to the FT report, the European Securities and Markets Authority (ESMA), along with regulators in countries including France and Germany, is now looking into how Binance has relied on the exemption to maintain its presence in the bloc.
