According to CoinMeta, EU regulators are investigating whether Binance is taking advantage of a reverse request rule to continue serving European customers. The European Securities and Markets Authority (ESMA) as well as regulatory authorities in France, Germany, and Greece are reviewing Binance's compliance. Binance stated that it is working to obtain the necessary authorization to operate in the European market. Regulators are concerned whether Binance is exploiting this rule as a loophole to continue serving millions of EU users without obtaining the required licenses. Under the relevant rules, non-EU exchanges are not allowed to serve EU users without valid licenses. The regulations also require unlicensed platforms to prepare plans to cease their operations within the EU.