European Exchanges Struggle with MiCA Compliance as Onboarding Processes Come Under Scrutiny

The European Union's Markets in Crypto-Assets (MiCA) regulation has come into effect, and its impact on unlicensed cryptocurrency exchanges is being felt. To test how these exchanges treat new users, a team of researchers created accounts on several platforms and observed the outcomes.

They found that some exchanges were unwilling to onboard new users due to MiCA's requirements for strict customer verification procedures. In contrast, other exchanges appeared to have made efforts to adapt to the new regulations by implementing more efficient and user-friendly onboarding processes.

The study highlights the need for unlicensed exchanges to adjust their practices in line with the MiCA regulations, which aim to increase transparency and security in the cryptocurrency market.