Seven weeks after the European Union’s deadline for crypto firms to secure a license under the Markets in Crypto-Assets regulation, Binance is still opening new accounts for customers across the bloc — a gap that has put Binance EU compliance under fresh scrutiny. Independent tests conducted by Sandmark found that the world’s largest cryptocurrency exchange by trading volume could still register, verify and fund new accounts in five EU countries as of 19 August, months after regulators told unauthorized platforms to stop taking on new clients.
Summary
Key takeaways
- Binance is still onboarding new EU customers seven weeks after the 1 July MiCA deadline, according to tests run by Sandmark on 19 August.
- Binance is not among the 330 providers listed on ESMA’s register of authorized MiCA firms as of 20 August.
- The exchange withdrew its MiCA license application in Greece on 24 June and is pursuing authorization in another member state.
- Belgian users contract with Binance Poland Sp. z o.o., an unauthorized entity, while funds move through Bahrain-based BPay Global and settle at JSC Pave Bank in Georgia.
- Austria’s financial regulator fined Bitpanda €70,000 on 14 August — the first enforcement action of its kind under MiCA.
Binance Continues EU Onboarding After MiCA Deadline
New Binance accounts can still be created and verified across several EU countries without any warning that the exchange lacks authorization under MiCA, according to tests carried out by Sandmark. That finding sits awkwardly next to the regulatory calendar: 1 July was the date by which unauthorized crypto firms were supposed to have stopped bringing in new European customers entirely.
What the Tests Revealed Across Five Countries
On 19 August, Sandmark opened and verified a new Binance account using a European identity document and a residential address, then deposited crypto into it — an account that did not exist before 1 July. Further attempts using connections in Austria, France, Germany, Spain and Belgium produced similar outcomes, both with and without a VPN. Fully verified accounts went live in two countries, and none of the tests triggered a disclaimer about missing MiCA authorization. Where accounts became active, crypto deposits remained available.
The contrast with how Binance treats US users is stark. Accessing the exchange from a US address redirected immediately to Binance.US, where deposits and trading were suspended and only withdrawals were permitted — a restriction dating back to US regulatory action in 2023. No such gatekeeping appeared for the European tests.
Discrepancies with ESMA’s Enforcement Mandates
The European Securities and Markets Authority laid out clear expectations back in June. In a public statement on 23 June, ESMA said unauthorized providers “must have implemented its wind-down plan” by 1 July and were required to stop onboarding new clients immediately, restricting themselves to exit-only activity. National regulators were told to verify those wind-down plans and pursue enforcement against unauthorized crypto services. Sandmark’s account openings after that date suggest the instruction has not been fully applied in practice, at least in the cases tested.
Regulatory and Licensing Gaps in the EU
Binance’s path toward full MiCA authorization has been anything but smooth, and the exchange’s absence from the EU’s official registry remains the clearest sign of where things stand.
Withdrawal in Greece and the Search for a New Home
Binance withdrew its MiCA license application in Greece on 24 June, just days before the Hellenic Capital Market Commission was expected to reject it. The exchange has since told users across the bloc — in Italy, Spain, France, Poland, Belgium and Sweden — that new registrations, deposits and its Earn yield products would be curtailed from 1 July, though customers were not required to withdraw funds by that date. Binance says it is now pursuing authorization in another EU member state and maintains it has not abandoned the European market.
Missing From ESMA’s Authorized Register
As of 20 August, ESMA’s register listed 330 authorized providers under MiCA, compared with 1,343 firms that had been operating across the European Economic Area before the transition period closed, according to blockchain analytics firm TRM Labs. Binance’s name does not appear on that list. It also does not appear on ESMA’s separate register of firms flagged for providing crypto services without authorization — a list of 167 entries as of the same date, most of them supplied by Italy’s Consob. No national regulator has publicly named Binance in connection with unauthorized activity.
How Binance’s EU Operations Actually Work
Behind the login screen, Binance’s European business runs through a layered corporate structure that spans at least three jurisdictions outside the bloc’s main markets — a setup that adds another wrinkle to questions about Binance EU compliance.
Binance Poland, BPay Global and a Bank in Georgia
Sandmark’s Belgian account registration, completed in about ten minutes and requiring an identity photo, a live face check and questions about income and employment, revealed that Belgium-based clients contract through Binance Poland Sp. z o.o., an entity registered in Poland that operates as a virtual asset service provider. The country currently lacks authorized firms on ESMA’s MiCA register, and neither Binance Poland nor any other Binance entity is listed. Fund transfers are handled by BPay Global B.S.C., Binance’s Bahrain-based payments affiliate, which settles through an account at JSC Pave Bank in Tbilisi, Georgia.
Deposit and Withdrawal Restrictions
Not every part of the process went smoothly for Sandmark’s testers. An attempt to move funds into one account via SEPA, the EU’s euro bank-transfer system, was blocked after a third-party provider flagged a mismatch with the registered address — even though Binance’s own dashboard showed that address as verified. Crypto deposits, however, continued to work without issue, underscoring a pattern in which fiat rails face more friction than crypto rails inside the same account.
Enforcement Falls Short as Wind-Down Plan Stalls
The wind-down that ESMA demanded by 1 July does not appear to have taken shape at Binance, and the exchange has offered little clarity on when it might. In written comments to Sandmark, Binance said it does not discuss individual users or onboarding cases and that the availability of its products in Europe depends on jurisdiction, transitional arrangements and the specific service involved. The company added that it has “taken steps to ensure that the availability of our products and services in Europe aligns with relevant legal and regulatory frameworks,” but did not explain why new accounts could still be opened and verified in Sandmark’s tests weeks after the deadline. The company stated its dedication to obtaining MiCA authorization and is making progress on its application in an “active” manner.
Bitpanda’s €70,000 Fine Sets a Precedent
While Binance’s situation remains unresolved, one enforcement case has already landed. On 14 August, the Austrian Financial Market Authority fined Vienna-based exchange Bitpanda €70,000 — the first fine issued under MiCA — for neglecting to file a crypto asset whitepaper no fewer than 20 days prior to its release and for sharing promotional content without the required regulatory disclaimer. The action shows that MiCA enforcement is beginning to bite, even if the gap around Binance’s continued EU account onboarding remains, for now, unaddressed. Sandmark has put its findings to both Binance and ESMA; ESMA confirmed receipt of the questions on 19 August and asked for more time to respond.
FAQ
Why is Binance still onboarding new EU users after the MiCA licensing deadline?
Binance withdrew its MiCA application in Greece and is seeking authorization in another EU state, but tests show it continues onboarding despite ESMA guidance to stop by 1 July.
Is Binance authorized under the EU MiCA regulation?
No, Binance is not listed on ESMA’s register of authorized providers under MiCA as of 20 August.
What does ESMA require from unauthorized crypto service providers?
ESMA requires unauthorized providers to immediately stop onboarding new EU clients and implement wind-down plans by 1 July.
What enforcement actions have EU regulators taken related to MiCA compliance?
The Austrian Financial Market Authority fined Bitpanda €70,000 for MiCA-related compliance failures, marking the first such enforcement action.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
