Binance will implement EU MiCA stablecoin regulations on June 30, 2024, which will take effect on June 30, 2024 across the European Economic Area (EEA), requiring issuers Managed stablecoins.
The MiCA stablecoin rules aim to enhance market clarity and stability, potentially increasing regulated Stablecoin adoption.
The important regulatory framework developed by the European Union over many years aims to strengthen supervision and consumer protection in the cryptocurrency market.
MiCA’s stablecoin rules will require stablecoins to be issued and offered to the public only by regulated entities. They will be classified as “regulated stablecoins”. Existing stablecoins that do not meet these requirements will be considered “unauthorized stablecoins” and will face certain restrictions.
Accordingly, Binance will implement phased changes to manage the availability of unauthorized Stablecoins for EEA users, ensuring a smooth transition to regulated Stablecoins.
Specific measures:
Binance Convert: The Convert function for Unauthorized Stablecoins will switch to “sell only” mode. Depending on the availability of regulatory channels, users can sell Unauthorized Stablecoins for other digital assets, regulated Stablecoins, or fiat currencies. The purchase of Unauthorized Stablecoins via the Convert function will be disabled.
Spot Trading: Trading pairs involving Unauthorized Stablecoins will remain available until further notice. Trading pairs involving Unauthorized and Regulated Stablecoins will coexist during the transition period.
Wallet Services: Custody and wallet services for unauthorized Stablecoins will continue, allowing users to deposit or withdraw these stablecoins from their Binance wallets.
Binance's measures demonstrate its commitment to compliance and user protection in this ever-evolving regulatory landscape.
