Binance Onboarding New EU Customers Despite Missing MiCA Deadline

Binance Onboarding New EU Customers Despite Missing MiCA Deadline

Binance, the world’s largest cryptocurrency exchange by trading volume, is continuing to open and verify accounts for new European customers more than seven weeks after the European Union’s July 1 MiCA licensing deadline. As of now, Binance remains absent from the EU’s register of authorized crypto providers, raising questions regarding compliance with new regulatory standards.

No Warning Signs from Binance

Recent tests conducted across several European countries, including Austria, France, Germany, Spain, and Belgium, showed no warning that Binance lacks MiCA authorization. Users reported being able to successfully complete the registration and verification process, including two accounts that were fully verified and capable of receiving cryptocurrency deposits. Notably, one such account was created on August 19 using a European identity document, and had not existed prior to the deadline.

Status of MiCA Authorization

While Binance had informed customers across multiple nations, such as Italy, Spain, and Belgium, that new registrations and deposits would cease post-deadline, this has not come to pass. Instead, users were still able to register and deposit funds. According to Binance, it intends to stay operational within the EU and is actively seeking authorization through another member state after previously abandoning its Greek application.

How Onboarding Works

Tests indicated that the onboarding process was still accessible, with no disclaimer regarding missing MiCA approval displayed during the registration. For instance, using a Belgian connection, an applicant managed to complete the verification process in about ten minutes, necessitating a photograph of an identity card and a live facial check.

Regulatory Instructions and Enforcement Actions

The European Securities and Markets Authority (ESMA) had explicitly directed unauthorized firms to cease onboarding new EU customers and restrict their services by July 1. Following the deadline, only a subset of firms, out of 1,343 operating in the European Economic Area, successfully obtained authorization, leaving over 1,000 without approval. Various EU authorities have started enforcement actions under the new regulations.

Conclusion

Binance’s continued account verifications and the ability for new customers to deposit cryptocurrencies after the MiCA deadline raises significant regulatory concerns. As the exchange navigates the complexities of EU regulations, its future operations within the bloc will remain under scrutiny.