Binance to Restrict Unregulated Stablecoins in EU Ahead of MiCA Regulation Implementation
Binance, the world’s largest cryptocurrency exchange by trading volume, is set to restrict the availability of certain stablecoins in the European Union (EU) to comply with the upcoming Markets in Crypto-Assets Regulation (MiCA).
This move is in response to the upcoming Markets in Crypto-Assets Regulation (MiCA), which aims to bring stablecoins under a new regulatory framework in the EU starting at the end of June.
Under upcoming MiCA rules some stablecoins will face restrictions as unauthorized stablecoins.
Binance won't delist any unauthorized stablecoins on spot but will limit their availability for EEA users only on certain products, such as launchpool and earn, and will propose…
— Binance (@binance) June 3, 2024
Binance announced it will soon restrict access to stablecoins deemed “unregulated” by the European Union. This change aligns with the imminent implementation of the Markets in Crypto-Assets Regulation (MiCA), which will enforce a new regulatory framework for stablecoins within the EU.
The MiCA regulation, set to take effect at the end of June, is expected to significantly impact the stablecoin market in the European Economic Area (EEA).
Binance stated that under these new MiCA rules, only stablecoins issued by regulated companies would be available to the public. Consequently, several existing stablecoins might not meet the criteria and will face certain restrictions.
“This will be a first step in entering the new regulatory framework and it will have a significant impact on the stablecoin market in the European Economic Area,” an official statement said.
Although Binance did not specify which stablecoins would be affected, the exchange outlined a phased approach to comply with the new regulations.
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