Regulation
Binance to limit some stablecoins to comply with EU crypto rules
Cryptocurrency exchange Binance is set to limit some stablecoins in the European Union to comply with new Markets in Crypto Assets (MiCA) regulations.
The regulation, which will come into effect at the end of June, aims to establish robust oversight of stablecoins.
Binance is transitioning its users from unauthorized to regulated stablecoins.
The move highlights the growing regulatory oversight over the cryptocurrency market within the European Economic Area (EEA) and is poised to influence the future of stablecoin usage.
The aim of MiCA is to strengthen investor protection and promote the presence of the euro in crypto transactions, which currently represent only a minor 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 stablecoins to be restricted have not been disclosed, but Binance has indicated that only a 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 Regulations (AMLR), will require crypto-asset service providers to conduct thorough due diligence and report any suspicious activity.