Binance was supposed to stop opening new EU accounts by July 1, 2026, after withdrawing its application for authorization under the European Union’s Markets in Crypto-Assets Regulation, or MiCA, the bloc’s rulebook for crypto companies. Tests by crypto publication Sandmark on Aug. 19 found that new accounts could still be created and verified from several member states.
- Binance continues onboarding and verifying new European Union users despite lacking authorization under Markets in Crypto-Assets Regulation.
- Sandmark tests on Aug. 19 show successful account verifications across 5 EU countries following Binance's June 24 Greek withdrawal.
- ESMA and national regulators examine whether Binance misuses the Article 61 reverse-solicitation exemption to bypass strict compliance mandates.
New Accounts Still Opened After July Deadline
Sandmark said its tests used European identity documents and residential addresses. Tests from Austria, France, Germany, Spain and Belgium produced similar results using ordinary internet connections and virtual private networks.
It reported that fully verified accounts were opened in two countries and said its staff deposited cryptocurrency into a highlighted account opened on Aug. 19. None of the tests produced a warning that Binance lacked MiCA authorization.
It also revealed that one highlighted account did not exist before July 1. The tests do not establish how many EU customers were onboarded after the deadline or how much activity those accounts represented.
Binance did not explain to Sandmark why the test accounts could still be opened. It said it does not comment on individual users, accounts or specific onboarding cases, and that product and service availability in Europe may vary by jurisdiction, transitional arrangements, the service involved and individual user circumstances.
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→ Submit a Press ReleaseBinance Withdrew Its Greek Application
Binance withdrew its MiCA application with Greece’s Hellenic Capital Market Commission, the country’s securities regulator, on June 24 and said it would seek authorization in another EU member state.
Binance said it remained committed to Europe and that some users might be affected by changes to its services. The company also said it would contact affected users directly.
Binance added it had not received a formal decision on its Greek application and withdrew it for that reason. Under MiCA’s transitional rules, crypto-asset service providers that had been operating under national law could continue until July 1, 2026, or until authorization was granted or refused, whichever came first.
The European Securities and Markets Authority, the EU’s markets watchdog, said in an April statement that unauthorized providers were expected to have implemented orderly wind-down plans by July 1. In a June 23 statement, ESMA said unauthorized firms must immediately stop onboarding new EU clients and opening new accounts after the transition period. Firms could continue services strictly needed for customers to sell, transfer, reallocate or close existing positions.
Article 61 Sets a Narrow Exception
MiCA’s Article 61 allows a crypto firm based outside the EU to provide a service to an EU client when the client acts on the client’s own exclusive initiative, a provision known as reverse solicitation. The exemption does not apply when the firm solicits the EU client, and MiCA says contractual clauses or disclaimers cannot override that requirement.
ESMA’s guidelines describe reverse solicitation as a narrowly framed exception and say it should not be used to circumvent MiCA. The August tests do not establish whether the customers in those tests were solicited.
EU Regulators Examine Binance’s Approach
The Financial Times reported Oct. 1 that ESMA and regulators in France, Germany and Greece are examining Binance’s use of the reverse-solicitation exemption, citing people familiar with the matter.
Some regulators have requested information, according to the FT. The newspaper reported that enforcement action, including fines, could follow if authorities reject Binance’s interpretation of the exemption.
Binance told the FT that it complies with applicable regulatory requirements and is actively working toward becoming MiCA-authorized. Binance also told Sandmark that it had taken steps to ensure the availability of its products and services in Europe aligned with relevant legal and regulatory frameworks following the implementation of MiCA. The company said it was continuing to pursue authorization.
Binance did not hold a MiCA authorization on July 1, 2026. The August tests took place after the EU transition deadline.
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