Reports indicate that Binance, which decisively remains the world’s largest cryptocurrency exchange by trading volume, has continued to allow new customers from European Union countries to open and verify accounts well after the July 1, 2026, deadline under the Markets in Crypto-Assets (MiCA) regulation.
The findings raise questions about consistent enforcement of the EU’s comprehensive crypto framework.
MiCA requires crypto-asset service providers to obtain authorization from a national regulator in one member state, which then enables passporting of services across the entire European Economic Area.
Firms lacking such approval were instructed to halt new client onboarding, stop marketing to EU residents, and implement orderly wind-down plans by the deadline.
The European Securities and Markets Authority (ESMA) emphasized that unauthorized entities must restrict activities primarily to facilitating client exits while protecting user interests and market integrity.
Binance had pursued a MiCA license through Greece but withdrew its application in late June 2026 amid reports that the Hellenic Capital Market Commission was prepared to reject it.
The exchange notified users in several countries, including France, Italy, Spain, Poland, Belgium, and Sweden, that it would limit new registrations, deposits, and certain yield products starting July 1.
It maintained that customer assets would remain accessible and that it intended to seek authorization in another EU jurisdiction, expressing confidence in securing a long-term compliant presence in Europe.
However, independent testing conducted in mid-August 2026 by the crypto analysis platform Sandmark revealed that the restrictions on new accounts had not been fully implemented.
Staff registered and completed identity verification (KYC) processes for accounts using European identity documents and residential addresses from multiple countries, including Austria, France, Germany, Spain, and Belgium.
Tests were performed both with and without virtual private networks. In at least two cases, accounts reached full verification and could accept cryptocurrency deposits.
Notably, none of the registration flows displayed warnings indicating that Binance lacked MiCA authorization.
One account created on August 19 using a European ID and address was verified and funded with crypto; it had not existed prior to the July deadline.
Access from a US location produced a starkly different result, redirecting users to the restricted Binance.US platform where deposits and trading were disabled.
In contrast, European connections allowed progression through onboarding without similar blocks related to regulatory status.
Binance’s terms for some users, such as those in Belgium, reference contracting with a Polish entity, with payment processing involving affiliates in Bahrain and settlement through a Georgian bank.
Neither Binance nor its related entities appear on ESMA’s register of authorized crypto-asset service providers, which listed around 330 approved firms as of mid-to-late August.
The exchange is also absent from ESMA’s separate list of entities flagged for unauthorized activity.In response to inquiries, Binance stated that it has taken steps to align product availability in Europe with applicable legal frameworks following MiCA’s implementation.
It noted that service availability can depend on jurisdiction, transitional rules, specific products, and individual circumstances, while reaffirming its commitment to obtaining authorization and operating compliantly long-term.
The company declined to address specific onboarding cases.
These developments occur against a backdrop of emerging enforcement actions.
For instance, Austria’s Financial Market Authority recently issued its first MiCA-related fine against another platform for procedural and marketing shortcomings. The situation underscores ongoing challenges in applying the new rules uniformly as the industry adapts to stricter oversight designed to enhance consumer protection and market stability.