Regulation
Binance disables copy trading for EU users ahead of MiCA
Binance, the world’s largest cryptocurrency exchange by trading volume, has disabled copy trading services for its European users as the implementation of the Marketplace in Crypto Assets (MiCA) approach approaches. ).
This regulatory change, which is expected to come into force at the end of June, signifies a substantial change to the European Union (EU) crypto environment.
As of today, European Binance users have found a message on their mobile app informing them that the copy trading service is no longer available in their region. Prior to this, Binance had warned “affected Lead Traders and Copy Traders” among its users.
The exchange advised them to close their positions in copy trading activities and transfer their funds to their respective spot wallets by the deadline of June 27, 2024 at 8:59 p.m. UTC. After this date, all remaining open positions will be automatically closed at market price and assets will be transferred to spot wallets.
Learn more: What are Markets in Crypto Assets (MiCA)?
Binance Notification of Restrictions on Copy Trading in EU. Source: Binance
BeInCrypto has contacted Binance regarding this matter. However, at the time of publication, we have not yet received a response.
This development came after Binance announced new rules on stablecoins not approved in the EU June 21st. Starting June 30, users cannot trade, deposit, or withdraw stablecoins that do not follow MiCA. guidelines.
“Stablecoins that are not authorized by MiCA, including USDT and others, will continue to be available for trading on Binance on Spot, for deposits and withdrawals, and in your account. wallet as per usual. They will also be available for sale on Convert. Binance will not phase out these stablecoins,” the email announcement said.
The exchange also changed its rewards and referral systems. Starting June 24, spot and Margin of negociation SEO commissions will be paid in BNB, Binance’s native token, instead of stablecoins. Thus, Binance advised its European users to review their holdings and consider moving to regulated stablecoins or other digital assets before the June 30 deadline.
MiCA regulation sets new standards for crypto assets in the EU
Introduced in 2023, MiCA is the first regulation of crypto assets in the EUproviding legal clarity to stakeholders. It categorizes digital assets, specifies the applicable laws and designates those responsible for their application.
This regulation addresses regulatory issues, ensuring a level Playing rules for crypto institutions in the EU and eliminate regulatory fragmentation between Member States. Additionally, it protects investors, prevents fraud and ensures compliance with anti-money laundering (AML) and financial laws.
Industry experts see MiCA as a breakthrough in establishing a consistent set of regulations for crypto assets across the continent. Mohsin Waqar, CEO of Web3 gaming Senet, believes unified regulatory frameworks like MiCA could reduce fragmentation and promote a stable environment.
Ilya Volkov, CEO of crypto platform YouHodler, also shared a similar sentiment. Despite the challenges surrounding stable coin Under the new regulations, Volkov believes that Web3 and crypto platforms should migrate from non-compliant stablecoins to those meeting MiCA standards. Nevertheless, he believes that MiCA defines a precedent for international crypto regulationserving as a model for other regions.
Learn more: Stablecoin Regulations Around the World
“Countries in Latin America and Asia will adopt similar approaches in the near future,” he told BeInCrypto.
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