News
MiCA regulations force Binance to review stablecoin services
Starting June 30, 2024, the European Economic Area (EEA) will implement new regulations under the Markets in Crypto-Assets (MiCA) framework, specifically targeting stablecoins. Binance, one of the world’s largest cryptocurrency exchanges, plans to roll out global changes to ensure compliance, impacting everything from trading to rewards.
Only regulated companies can issue and offer stablecoins, called regulated stablecoins. Many existing stablecoins will not meet these criteria and will be designated as unauthorized stablecoins, facing various restrictions on Binance’s platform, the cryptocurrency exchange said in a statement on its website.
From June 30, unauthorized stablecoins will switch to “sale-only” mode. Binance. EEA users can sell these stablecoins for other digital assets such as Bitcoin , regulated stablecoins or fiat currencies, where available. However, purchasing unauthorized stablecoins will no longer be an option.
Spot trading pairs involving unauthorized stablecoins will remain temporarily active, coexisting with those involving regulated stablecoins. This transition period is intended to minimize market disruption. However, users can still withdraw or deposit unauthorized stablecoins from their Binance wallets.
In addition to these specific impacts on its products, Binance will implement broader restrictions to align with Not rules. Rewards will move from unauthorized stablecoins to regulated stablecoins, BNB or other tokens. Existing vouchers can be requested until they expire.
Binance has also made changes to spot copy trading services for the EEA region. This service will end by June 29, 2024. The exchange has urged users to close positions and transfer funds to spot wallets before this date to avoid automatic closures.
Payments and Transactions
New loans and collateral involving unauthorized stablecoins will be blocked. However, existing loans and holdings in margin portfolios will remain unaffected for the time being. BinancePay will limit unauthorized stable currency
transactions. Users can no longer send, receive, or use these stablecoins for payments. Where necessary, refunds will be processed in EUR.
Platforms such as P2P trading, Binance OTC, the Earn money section of Web 3 Wallet, and NFT purchases will also impose restrictions on unauthorized stablecoins. Through these new changes, Binance aims to align its services with the MiCA regulatory landscape, promoting a compliant and stable cryptocurrency market in the EEA.
Starting June 30, 2024, the European Economic Area (EEA) will implement new regulations under the Markets in Crypto-Assets (MiCA) framework, specifically targeting stablecoins. Binance, one of the world’s largest cryptocurrency exchanges, plans to roll out global changes to ensure compliance, impacting everything from trading to rewards.
Only regulated companies can issue and offer stablecoins, called regulated stablecoins. Many existing stablecoins will not meet these criteria and will be designated as unauthorized stablecoins, facing various restrictions on Binance’s platform, the cryptocurrency exchange said in a statement on its website.
From June 30, unauthorized stablecoins will switch to “sale-only” mode. Binance. EEA users can sell these stablecoins for other digital assets such as Bitcoin , regulated stablecoins or fiat currencies, where available. However, purchasing unauthorized stablecoins will no longer be an option.
Spot trading pairs involving unauthorized stablecoins will remain temporarily active, coexisting with those involving regulated stablecoins. This transition period is intended to minimize market disruption. However, users can still withdraw or deposit unauthorized stablecoins from their Binance wallets.
In addition to these specific impacts on its products, Binance will implement broader restrictions to align with Not rules. Rewards will move from unauthorized stablecoins to regulated stablecoins, BNB or other tokens. Existing vouchers can be requested until they expire.
Binance has also made changes to spot copy trading services for the EEA region. This service will end by June 29, 2024. The exchange has urged users to close positions and transfer funds to spot wallets before this date to avoid automatic closures.
Payments and Transactions
New loans and collateral involving unauthorized stablecoins will be blocked. However, existing loans and holdings in margin portfolios will remain unaffected for the time being. BinancePay will limit unauthorized stable currency
transactions. Users can no longer send, receive, or use these stablecoins for payments. Where necessary, refunds will be processed in EUR.
Platforms such as P2P trading, Binance OTC, the Earn money section of Web 3 Wallet, and NFT purchases will also impose restrictions on unauthorized stablecoins. Through these new changes, Binance aims to align its services with the MiCA regulatory landscape, promoting a compliant and stable cryptocurrency market in the EEA.