Europe’s MiCA transition phase concluded on July 1, requiring crypto exchanges to hold a CASP licence before onboarding new clients from EU jurisdictions. Finance Magnates conducted practical testing to determine whether platforms without authorisation had actually restricted access to users connecting via EU IP addresses, revealing inconsistent enforcement across major platforms.
Binance withdrew its Greek licence application days before the deadline and publicly committed to blocking new EU registrations and position openings, though existing users retain withdrawal rights. Testing showed that while a regulatory information popup appeared during sign-up attempts from EU locations, the registration pathway was not immediately blocked, instead redirecting users to customer support. The company’s co-founder claimed regulators had previously deemed the application fully compliant, though this remains unverified.
MEXC showed no visible restrictions during the registration process despite the regulatory deadline passing. The exchange’s only statement came via its support channel on social media, assuring users they could continue using the platform normally. The platform’s restricted jurisdiction list, updated in May, did not include EU member states. MEXC’s CEO had previously identified MiCA authorisation as a strategic priority in April.
The divergence between public commitments and actual technical barriers raises questions about enforcement mechanisms and whether reliance on IP geolocation alone constitutes adequate compliance with MiCA’s market access restrictions.
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FXnCO Insight
** Brokers operating in regulated markets should note that technical gatekeeping measures must demonstrably prevent prohibited access, not merely signal intent, as supervisors increasingly scrutinise implementation over statements.
Source: Finance Magnates