Binance Ignites Regulatory Firestorm by Allowing New EU Accounts Despite MiCA Fiasco
Binance, the largest cryptocurrency exchange by trading volumes, has been accused of non-compliance with the Markets in Crypto Assets (MiCA) framework after it entered into effect on July 1.
A report from Sandmark found that Binance allowed European users to register on its platform without any license warnings despite failing to obtain a MiCA license. The exchange reportedly opened new EU accounts, including two fully verified KYC accounts in different countries, with no warning about lacking MiCA licenses.
The European Securities and Markets Authority (ESMA) had mandated unauthorized firms to halt EU onboarding by July 1, but Binance representatives told Sandmark that they are still pursuing MiCA licensing in the region. The exchange claimed it is taking steps to ensure compliance with relevant legal and regulatory frameworks, although regulators are already issuing penalties for MiCA violations.
The Austrian Financial Market Authority (FMA) fined Bitpanda 70K euros on August 14 for notification and marketing violations under the new framework.