Binance, the world’s largest cryptocurrency exchange by trading volume, may soon be banned in the European Union (EU).
The Malta-based company has come under fire from the EU’s financial watchdog, the European Securities and Markets Authority (ESMA), for allegedly offering “unauthorized” investment products and services to retail investors.
In a recent report, the ESMA warned that Binance was “Targeting” EU investors with its “cryptocurrency investment products and services” without being authorized to do so.
The ESMA also noted that Binance was not registered as a “provider of investment services” in any EU country.
It is important to note that any such decision would be based on legal considerations and may not necessarily reflect public opinion or sentiment. As such, it is recommended that users of Binance consult with their legal advisors before engaging with any activities related to Binance in the EU.
If Binance is found to be operating in the EU without proper authorization, it could be banned from doing business in the bloc.
The ESMA’s report comes just weeks after Binance announced plans to launch a “decentralized” cryptocurrency exchange in Malta.
Binance CEO Zhao Changpeng has said that the company is “committed to complying with all applicable lAWS and regulations” in all jurisdictions where it operates.
However, it remains to be seen if Binance will be able to continue operating in the EU if it is banned by the ESMA.