The European Commission has reopened the Markets in Crypto-Assets Regulation (MiCA) for comprehensive review after barely two years of implementation, launching a targeted consultation on August 20, 2026 with a deadline of September 30, 2026. The review covers 86 questions addressing fundamental aspects of the EU crypto framework, including the stablecoin interest ban, staking, lending and DeFi regulations. As per the European Commission's consultation document, the review aims to establish whether administrative burdens from MiCA can be 'simplified, reduced or removed altogether' while maintaining technological neutrality principles. The consultation specifically asks whether the interest ban on stablecoins should fall, whether staking gets rules of its own, and whether crypto lending should be regulated, with responses submitted through the online questionnaire only being counted for the summary report.
Europe's crackdown on Tether's USDT is entering a new phase as platforms adapt to MiCA requirements, with Revolut telling European users it would delist USDT after August 31. According to Artemis Analytics, Tether being squeezed out of a major market has shown little sign of triggering a major shift in USDT activity globally. As Alex Weseley from Artemis Analytics explains, dollar stablecoins are being used for more than trading or saving in other regions of the world, with Argentina providing a notable example where stablecoin activity continues to grow despite restrictions on accessing actual US dollars. Lemon, an Argentine crypto platform, processed $9.3 billion in total volume in 2025, up 60% from the previous year, with transactional users growing 70% to nearly 1.8 million and stablecoin volume increasing 45% year-on-year.
According to a Sandmark report shared with crypto.news, Binance has continued opening and verifying new European customer accounts more than seven weeks after the European Union's July 1 MiCA licensing deadline. Tests across several EU countries found that new users could still complete Binance's registration and identity verification process after the deadline, with two accounts fully verified and able to receive crypto deposits. The tests covered connections in Austria, France, Germany, Spain and Belgium, using both standard internet connections and virtual private networks, with no warning that Binance lacked MiCA authorization displayed to applicants. As of August 19, Sandmark opened and verified a new account using a European identity document and residential address, then deposited crypto into it - an account that did not exist before July 1. The contrast with how Binance treats US users is stark, as accessing the exchange from a US address immediately redirected users to Binance.US, where deposits and trading were suspended and only withdrawals were permitted.
One account created on August 19 using a European identity document and residential address was verified and subsequently funded with cryptocurrency, having not existed before July 1. Using an Austrian IP address and Spanish identity document, one applicant completed verification within minutes with no disclaimer stating that Binance lacked MiCA approval. A separate registration from Spain using Spanish internet connection and local address information completed the sign-up process before Binance rejected the registration due to existing account status, with the rejection not citing EU residency or MiCA restrictions. The 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. 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. Crypto deposits continued to work without issue, while an attempt to move funds via SEPA 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.
The European Securities and Markets Authority had instructed unauthorized providers to stop onboarding new EU customers and implement wind-down plans by July 1. An August 11 review found that 281 of 1,343 providers operating across the European Economic Area before the transition had obtained authorization, leaving 1,062 without approval. By August 20, the ESMA register contained 330 authorized providers, with Binance absent from both the authorized providers list and ESMA's separate register of unauthorized providers. As of August 20, ESMA's register listed 330 authorized providers 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 withdrew its MiCA license application in Greece on June 24, just days before the Hellenic Capital Market Commission was expected to reject it, and is now pursuing authorization in another EU member state. The exchange maintains it has not abandoned the European market and has taken steps to ensure that the availability of its products and services in Europe aligns with relevant legal and regulatory frameworks.
According to crypto.news, Binance had previously informed customers in Italy, Spain, France, Poland, Belgium and Sweden that several services would be restricted once the transition period expired, with Earn products providing yields on deposited crypto also set to be suspended. Customers were not required to withdraw assets by July 1, with Binance stating funds would remain safe while seeking authorization elsewhere in the EU. The exchange did not provide a specific explanation for why new European accounts could still complete verification after July 1, stating it remains committed to securing authorization and is 'actively progressing' its application. 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 stated its dedication to obtaining MiCA authorization and is making progress on its application in an "active" manner, though it did not explain why new accounts could still be opened and verified in Sandmark's tests weeks after the deadline.
Regulators have begun taking enforcement action under MiCA, with Austria's Financial Market Authority announcing its first case on August 14, imposing a €70,000 fine on Vienna-based Bitpanda for failing to submit a crypto asset whitepaper and distributing marketing materials without required disclaimers. The enforcement action demonstrates the seriousness with which regulators are treating compliance with the new framework. Binance said it does not comment on specific customers, accounts or individual onboarding cases, adding that European service availability can vary based on jurisdiction, transitional rules and individual circumstances. Sandmark has put its findings to both Binance and ESMA, with ESMA confirming receipt of the questions on August 19 and asking for more time to respond. 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. No national regulator has publicly named Binance in connection with unauthorized activity, though the exchange's absence from the EU's official registry remains the clearest sign of where things stand.
