Binance Onboards EU Clients 7 Weeks After MiCA Deadline

Binance has continued opening and verifying new European customer accounts more than seven weeks after the EU's July 1 MiCA licensing deadline, despite remaining absent from the bloc's register of authorized crypto providers.

According to a Sandmark report shared with crypto.news, tests across several EU countries found that new users could still complete Binance's registration and identity verification process after the deadline. Two accounts were fully verified and able to receive crypto deposits.

The tests covered connections in Austria, France, Germany, Spain and Belgium, using both standard internet connections and virtual private networks. None displayed a warning telling applicants that Binance lacked authorization under the Markets in Crypto-Assets regulation.

One account, created on Aug. 19 using a European identity document and residential address, was verified and subsequently funded with cryptocurrency. The account had not existed before July 1.

Binance, the world's largest cryptocurrency exchange by trading volume, withdrew its Greek MiCA application in June after its licensing effort stalled. The company has maintained that it intends to stay in Europe and is pursuing authorization through another EU member state.

The results come after Binance had told customers in several European countries that new registrations and deposits would stop from July 1 after it failed to secure MiCA authorization.

As previously reported by crypto.news, Binance informed users in Italy, Spain, France, Poland, Belgium and Sweden that several services would be restricted once the transition period expired. Earn products, which provide yields on deposited crypto, were also set to be suspended.

Customers were not required to withdraw their assets by July 1. Binance said funds would remain safe while it sought authorization elsewhere in the EU.

The latest tests found that some controls remain in place even though new account creation has not been completely blocked.

Using an Austrian IP address and a Spanish identity document, one applicant completed verification within minutes. No disclaimer appeared stating that Binance lacked MiCA approval, and crypto deposits remained available.

A separate registration from Spain used a Spanish internet connection without a VPN, along with local address and employment information. The applicant completed the sign-up process before Binance rejected the registration because the individual already had an account. The rejection did not cite EU residency or MiCA restrictions.

Access from the United States produced a different result. A U.S. connection immediately redirected the user to Binance.US. After a login to the international platform, deposits and trading were suspended, leaving only withdrawals available.

Binance said it does not comment on specific customers, accounts or individual onboarding cases. The company added that European service availability can vary based on the jurisdiction, transitional rules, the product involved and individual circumstances.

“Following the implementation of MiCA, we have taken steps to ensure that the availability of our products and services in Europe aligns with relevant legal and regulatory frameworks,” Binance said.

The exchange did not provide a specific explanation for why new European accounts could still complete verification after July 1. Binance said it remains committed to securing authorization and is “actively progressing” its application.

Another registration conducted through a Belgian connection without a VPN resulted in an active account in about ten minutes.

The onboarding process required a photograph of an identity card and a live facial check through a camera. The applicant was also asked to provide information about income, savings and professional status.

Under Binance's terms, customers based in Belgium contract with Binance Poland Sp. z o.o., a Polish-registered virtual asset service provider.

Poland had no authorized providers on the ESMA register cited in the report, while neither Binance Poland nor another Binance entity appeared among approved providers.

Payment transfers for the Belgian account were handled by BPay Global B.S.C., Binance's Bahrain-based payments affiliate. The funds were set to settle through an account at JSC Pave Bank in Tbilisi, Georgia.

An attempted transfer through SEPA, the EU's euro bank-transfer system, prompted another series of checks from BPay. The transfer was not completed, leaving the additional checks that may have applied to a completed transaction unclear.

MiCA regulates the provision of crypto services to European customers, not simply whether an exchange's website can be accessed from an EU country. The tests therefore examined whether new European customers could register, pass identity checks and fund accounts after July 1.

The European Securities and Markets Authority had given firms explicit instructions before the transition period expired.

In a June 23 statement, ESMA said unauthorized providers should immediately stop onboarding new EU customers and restrict their remaining services to actions needed for clients to exit.

By July 1, unauthorized providers “must have implemented its wind-down plan,” the regulator said. National authorities were also instructed to check those plans and “take action against the unauthorized provision of crypto-asset services.”

Earlier in April, ESMA had said a company providing covered crypto services to EU customers without authorization would be in breach of EU law once the applicable transition ended.

The licensing gap remained large after the deadline. An Aug. 11 review of MiCA authorization found that 281 of 1,343 providers operating across the European Economic Area before the transition had obtained authorization, leaving 1,062 without approval.

Around the July deadline, ESMA added 57 firms to its register. Standard Chartered and FalconX were among the companies approved, while licensed providers gained the ability to use MiCA passporting rights to serve customers across EU member states.

A July 3 register update showed that the additions had taken the number of authorized providers to 300 at the time.

By Aug. 20, the register cited in the latest report contained 330 authorized providers. Binance was not among them.

ESMA separately maintains a register of companies identified as providing crypto services without authorization. That list contained 167 entries as of Aug. 20, including 164 supplied by Italy's Consob and one each from regulators in the Netherlands and Slovakia. Binance was also absent from that list.

Binance's current position follows several weeks of country-specific restrictions after the MiCA deadline.

French customers lost trading access in early July after Binance failed to obtain authorization. Spot and margin trading were among the affected services, while withdrawals remained available.

Binance also told affected EU customers at the start of July that their assets remained backed on a one-to-one basis and that previously communicated account options, including withdrawals where applicable, would continue.

The licensing problem had developed before the deadline. Binance formally applied for MiCA authorization only in Greece, while discussions had also taken place with regulators in other jurisdictions.

On June 24, Binance said it would seek another EU route if its Greek application failed to progress. The company withdrew that application the same day, shortly before the Hellenic Capital Market Commission was reportedly expected to reject it.

Restrictions were also visible during the latest account tests. The account created through Austria with a Spanish identity document could not deposit euros through a bank transfer after a third-party provider flagged an address mismatch, although Binance's dashboard showed the address as verified. Cryptocurrency deposits were still permitted.

Regulators have meanwhile begun taking enforcement action under MiCA. On Aug. 14, Austria's Financial Market Authority announced its first case under the framework, imposing a €70,000 fine on Vienna-based Bitpanda.

The FMA said Bitpanda failed to submit a crypto asset whitepaper at least 20 days before publication and distributed marketing materials without the required disclaimer stating that the regulator had not reviewed them.

ESMA was asked on Aug. 19 whether an unauthorized exchange allowing new EU customers to verify accounts and accept deposits after July 1 complied with its guidance, and whether it knew of other exchanges operating in the same manner. The regulator's press office confirmed receipt of the questions and requested more time to respond. Austria's FMA declined to comment.