Binance, a well-known cryptocurrency exchange, recently made an announcement regarding stablecoins. According to the platform, the new MiCA regulations will impose restrictions on certain stablecoins, as the exchange aims to fully comply with the law. The company shared the impact of these exclusive regulations and its approach on its official X account.
Under the upcoming MiCA rules, some stablecoins will face restrictions as unauthorized stablecoins. Binance will not delist any unauthorized stablecoins on the spot, but will limit their availability to European Economic Area (EEA) users only on certain products, such as launchpool and earn. The exchange will also propose…
Binance has cautioned against potential restrictions on certain stablecoins under the MiCA rules. In a blog post on its official website, the company revealed that the MiCA Stablecoin regulations will be implemented on June 30th of this year, affecting the entire EEA. This will be the first step in entering the unique regulatory agenda.
The exchange stated that this will have a significant impact on the stablecoin sector within the EEA jurisdiction. According to Binance, the stablecoin regulation in the EEA will only allow specific regulated entities to offer and issue stablecoins, categorizing them as “regulated stablecoins.” However, many existing stablecoins may not fall into this category.
As a result, these excluded stablecoins may face certain restrictions and will be classified as “unauthorized stablecoins” under MiCA. Binance will gradually limit the availability of these stablecoins, allowing EEA consumers to transition to regulated stablecoins without market disruptions and in compliance with the stablecoin rules under MiCA.
The exchange emphasized its commitment to protecting its users while complying with regulations. In light of this, Binance will restrict the availability of unauthorized stablecoins for EEA consumers on its Binance wallet, Spot Trading, and Binance Convert. EEA-based banks and EMIs will have certain permissions under the regulations, allowing them to mint and issue stablecoins, communicate offers, boost stablecoin purchases, and request trading entities to list the stablecoins. Binance assured that it will comply with all related regulatory requirements and ensure the protection of its consumers in the process.