Binance Evades EU Crypto Regulation with Clever Routing

The European Securities and Markets Authority (ESMA) has been enforcing the Markets in Crypto-Assets (MiCA) regulation, which requires crypto firms to hold authorization before operating in the EU.

Binance, one of the largest crypto exchanges, bypassed this regulation by routing EU sign-ups through non-EU entities, exploiting regulatory gaps.

New Binance accounts could be opened and verified using European identity documents from several countries, including Austria, France, Germany, Spain, and Belgium, seven weeks after the July 1 MiCA deadline.