Binance To Restrict ‘Unauthorized Stablecoins’ For European Union Users Starting June 30
In Brief
Binance disclosed that starting June 30th, only regulated stablecoins will be available within the European Economic Area.
Cryptocurrency exchange Binance disclosed that commencing June 30th, only specific regulated entities will have the authorization to issue and offer stablecoins labeled as “Regulated stablecoins” within the European Economic Area (EEA). Other stablecoins not meeting regulatory criteria will face restrictions and fall under the classification of “Unauthorized Stablecoins.”
Binance will gradually adjust the availability of Unauthorized Stablecoins. This includes retaining the convert function for Unauthorized Stablecoins, albeit in a “sell-only” mode, permitting users to exchange them for other digital assets, including regulated Stablecoins. However, the option to buy Unauthorized Stablecoins will be discontinued from June 30th onwards. Spot trading for these assets will also be suspended, while custody and wallet services will be unaffected.
Furthermore, commencing on June 30th, the exchange will extend product restrictions throughout its entire range to prohibit users from engaging in new products or services related to Unauthorized Stablecoins.
Rewards earned from campaigns and referrals will now be distributed in Regulated Stablecoins, BNB, or other non-stablecoin tokens. Copy trading for EEA users will be discontinued starting June 29th at 20:59 UTC. Additionally, new borrowings of Unauthorized Stablecoins will be prohibited. Regarding the Binance Launchpool, the FDUSD pool will be inaccessible for EEA users. New subscriptions in Simple Earn, Binance Loans, VP Loans, Dual Investment, Cloud Mining, and related services such as Red Packet, Spend To Earn, Gift Card, and Web3 Wallet – Earn Section will be restricted before June 29th at 20:59 UTC.
Binance Aligns With MiCA Regulations In Preparation For Its Enforcement In EEA
The recent announcement coincides with the impending enforcement of MiCA stablecoin regulations, scheduled to take effect across the EEA on June 30th. This move by Binance marks the initial phase of adaptation to the new regulatory framework, which is expected to substantially influence the stablecoin market within the EEA.
Stablecoins gain significant attention under the MiCA as it aims to enhance consumer protection and economic stability by imposing stringent regulations on stablecoin activities. One of the key aspects is the requirement for stablecoin issuers to obtain licenses from relevant EU authorities. Additionally, issuers must fulfill various obligations, including the authorization of a “white paper” by national regulatory bodies, adherence to regulatory protocols, maintenance of adequate reserves, and implementation of secure custody solutions for underlying assets.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
