Regulation
Binance will restrict some stablecoins to comply with EU crypto rules
Cryptocurrency exchange Binance will restrict some stablecoins in the European Union to comply with the new Cryptocurrency Markets Regulation (MiCA).
The regulation, which will take effect at the end of June, aims to establish robust oversight of stablecoins.
Binance is transitioning its users from unauthorized to regulated stablecoins.
This move highlights the growing regulatory scrutiny of the cryptocurrency market within the European Economic Area (EEA) and is poised to impact the future of stablecoin usage.
MiCA’s goal is to strengthen investor protection and promote the presence of the euro in crypto transactions, which currently represents a smaller part of the market.
Binance plans to implement a “sell only” policy for non-compliant stablecoins, directing users towards Bitcoin, Ether, regulated stablecoins or fiat currencies. The specific restricted stablecoins were not disclosed, but Binance indicated that only a select few meet the MiCA criteria.
The exchange’s proactive stance on compliance includes recent structural changes to align with French regulations and is indicative of the broader regulatory trend in Europe.
The MiCA framework, together with the new anti-money laundering (AMLR) regulations, will require crypto-asset service providers to conduct thorough due diligence and report any suspicious activity.