Binance Will Limit 'Unauthorized Stablecoins' for EU Users Beginning June 30

Cryptocurrency exchange Binance The exchange has revealed that beginning June 30, only specific authorized stablecoins issued by regulated entities will be allowed in the European Economic Area (EEA). Any stablecoins that do not comply with the regulatory standards will be categorized as 'Unauthorized Stablecoins' and face certain restrictions.

Binance plans to gradually modify the accessibility of Unauthorized Stablecoins. While the option to convert these coins will still exist, it will shift to a 'sell-only' feature, allowing users to trade them for other digital currencies, including the authorized stablecoins. However, the purchase option for Unauthorized Stablecoins will be terminated from June 30 onward. Additionally, spot trading for these coins will come to a halt, along with custody services. wallet services will be unaffected.

Moreover, starting on June 30, Binance will implement a comprehensive set of restrictions across its services to prevent users from engaging with new products or services linked to Unauthorized Stablecoins.

Rewards from promotional campaigns and referrals will now be allocated in Regulated Stablecoins, BNB, or other token types that do not fall under the stablecoin category. The option for EEA users to engage in copy trading will cease on June 29 at 20:59 UTC. Furthermore, borrowing of Unauthorized Stablecoins will be restricted. Regarding other services, the FDUSD pool will no longer be available to EEA users. New subscriptions for services like Simple Earn, Binance Loans, VP Loans, Dual Investment, Cloud Mining, and others such as Red Packet, Spend To Earn, Gift Card, and the Web3 Wallet – Earn Section will be limited before June 29 at 20:59 UTC. Binance Launchpool Binance Prepares for MiCA Regulation Enforcement in the EEA

This announcement comes as MiCA regulations are set to be enforced starting June 30 across the EEA. Binance’s proactive approach represents the first steps in aligning with this new regulatory landscape, which is anticipated to significantly impact the stablecoin ecosystem in the EEA.

Close attention will be paid to the frameworks established under MiCA as they strive to bolster consumer protection and economic integrity by instituting rigorous rules around stablecoin operations. A central element of these rules is that stablecoin issuers must acquire licenses from the relevant authorities in the EU. Additionally, these issuers will be obligated to meet several requirements, such as having a 'white paper' approved by national regulators, adhering to compliance protocols, maintaining proper reserves, and employing secure custody practices for their underlying assets. MiCA stablecoin regulations Please be aware that the information on this page should not be construed as legal, tax, investment, financial or any other type of advice. It is essential to only invest what you can afford to lose and to seek out independent financial counsel if you have any uncertainties. For more detailed information, we advise reviewing the terms, conditions, and support documentation provided by the issuer or advertiser. MetaversePost is dedicated to offering accurate and objective reporting, but market conditions may change without prior notice.

Stablecoins Alisa, a passionate journalist with Metaverse Post, focuses on cryptocurrency, zero-knowledge proofs, investment strategies, and the broadening scope of Web3. With a sharp focus on emerging trends and innovative technologies, she provides insightful coverage aimed at educating and engaging readers in the dynamic world of digital finance.