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Binance to Restrict Access to Unregulated Stablecoins in the EU

As the MiCA regulations come into effect, users in the European Economic Area will see significant changes in the availability of stablecoins on the Binance platform.


As the MiCA regulations come into effect, users in the European Economic Area will see significant changes in the availability of stablecoins on the Binance platform.
Credit: Foretoken Media 2024

BRUSSELS – Binance, the world's largest cryptocurrency exchange by trading volume, has announced upcoming restrictions on the availability of stablecoins in the European Union that are considered "unregulated." This move comes in response to the EU's Markets in Crypto-Assets Regulation (MiCA), which will take effect at the end of June.


Impact on the Stablecoin Market


In a statement, Binance emphasized that this regulatory shift marks the first step into a new framework that will significantly impact the stablecoin market within the European Economic Area.


According to Binance, as stablecoins become regulated in Europe, only tokens issued by "regulated companies" will be accessible to the public. Consequently, several existing stablecoins may not meet these criteria and will be subject to certain restrictions.


Binance's Phased Approach to Compliance


Binance also detailed a phased approach to align with the new stablecoin regulations in Europe. Initially, the exchange will enable users to convert their holdings in "unauthorized" stablecoins to other digital assets such as Bitcoin and Ether, regulated stablecoins, or fiat currency. This conversion option is part of Binance's strategy to comply with the regulatory changes.


From June 30 onwards, purchasing "unauthorized" stablecoins in Europe will no longer be possible on Binance. This measure is aimed at ensuring compliance with the MiCA regulations and promoting a more regulated and secure cryptocurrency environment.


Leadership and Regulatory Collaboration


Since the former Binance CEO Changpeng Zhao was sentenced to four months in prison in April, the company's new leader, Richard Teng, has been proactive in enhancing Binance's collaboration with regulators.


This latest move to restrict unregulated stablecoins aligns with Teng's efforts to foster a more cooperative relationship with regulatory bodies.


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