Binance Restrict Unlicensed Stablecoins in EU from June 30, Encourages Users to Transition to Regulated Tokens

Binance, the leading global cryptocurrency exchange by trade volume, has declared plans to limit access to certain stablecoins within the European Union, labeling them as “unregulated” according to EU standards.

According to a recent announcement by Binance, the European Union’s Markets in Crypto-Assets Regulation (MiCA), set to be enforced by the end of June, will affect which stablecoins can be accessed within the region. “Initiating this regulatory framework marks a significant step, impacting the stablecoin landscape within the European Economic Area,” Binance stated.

The exchange explained that following the regulation, only stablecoins issued by entities recognized as “regulated” by European authorities will be accessible to investors. Binance noted, “A number of current stablecoins may not meet these criteria and will thus face certain limitations.”

In response to inquiries about which stablecoins are deemed “unauthorized,” Binance referred to a blog post elaborating on its stance. The post highlighted the current scarcity of regulated stablecoins, which may not offer enough liquidity to meet industry-wide demands suddenly. “In the next few months, we anticipate more regulated stablecoins entering the market, facilitating a full transition to regulated stablecoins gradually, in line with MiCA’s goals,” the post read.

Binance also described a “phased” strategy to comply with European stablecoin regulations. Initially, the platform will permit users to convert “unauthorized” stablecoins into other cryptocurrencies like Bitcoin and Ethereum, regulated stablecoins, or fiat currencies, as per Binance’s guidelines.

From June 30 onward, purchasing “unauthorized” stablecoins will be prohibited in Europe, Binance confirmed.

Following the sentencing of former CEO Changpeng Zhao to a four-month prison term in April, Binance’s new CEO, Richard Teng, has been proactive in fostering better relations with regulatory bodies.

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