Binance, one of the world's leading cryptocurrency exchanges, recently announced significant changes to its stablecoin regulations in Europe.
Starting in late June, Binance will begin restricting access to “unauthorized” stablecoins under the new MiCA stablecoin rules across the European Economic Area (EEA).
Binance adapts to new Stablecoin regulations
Under the new regulationsonly regulated companies will be able to issue and offer stablecoins to the public, which will be classified as “regulated stablecoins.”
As a result, several existing stablecoins may not meet the requirements to be categorized as such. Consequently, they will be subject to certain restrictions, which will give them the “unauthorized stablecoins.”
To ensure a clear transition for its users and comply with MiCA stablecoin rules, Binance will implement gradual changes to the availability of unauthorized stablecoins, such as Announced on Monday. These changes will affect several aspects of Binance's product offering.
Starting June 30, the exchange will restrict the availability of Stablecoins labeled as unauthorized to EEA users across its range of products and services. This includes Binance Convert, Spot Trading, Wallet and more.
Users may not participate in new products or services involving unauthorized Stablecoins. Binance aims to avoid market disruption and ensure compliance with MiCA Stablecoin Rules.
The impacts will also be felt in several areas of the Binance ecosystem. Rewards, such as those earned in the Rewards Center, campaigns, and referrals, will be modified to be distributed in regulated stablecoins, BNB, or other non-stable tokens.
More changes ahead
Spot Copy Trading will no longer be available to EEA users on June 29. People using this service are advised to close their positions and transfer their funds to their respective Cash wallets before the specified date and time.
Margin trading will also be affected as new loans and unauthorized transfers of Stablecoins as collateral to users' margin wallets will be blocked. However, existing margin loans will not be affected and will not be subject to forced liquidation until further notice.
Margin traders affected by these changes are encouraged to close margin loans involving unauthorized Stablecoins. Existing unauthorized Stablecoin holdings in margin wallets can still be used to trade until new notice.
Binance Launchpad, Launchpool, Simple Earning, VIP Loans & Loans, Auto Invest, Dual Invest, Cloud Mining, Binance Pay, Send Cash, Red Pack, nft Purchases, Spend to Earn, Gift Cards, Web3 Wallet – Earnings section, P2P, and OTC trading will also experience specific restrictions or changes related to unauthorized Stablecoins.
At press time, the exchange's native token, BNB, is currently trading at $623, following the broader market's recovery with a 4.5% gain in the last 24 hours, inching closer to its high. annual of $642 reached in mid-March.
Featured image from Unsplash, chart from TradingView.com
