Binance, one of the world’s leading cryptocurrency exchanges, has announced significant changes to its stablecoin regulations in Europe.
Starting from June 30, Binance will restrict access to “unauthorised” stablecoins to comply with the new Markets in Crypto-Assets (MiCA) regulations across the European Economic Area (EEA).
Adapting to New Stablecoin Regulations
Under MiCA regulations, only regulated companies can issue and offer stablecoins to the public. These coins are classified as “Regulated Stablecoins.” Existing stablecoins that do not meet the new requirements will be categorised as “Unauthorised Stablecoins” and will face certain restrictions.
To ensure a smooth transition, Binance will implement phased changes starting June 30. These changes will restrict EEA users’ access to Unauthorised Stablecoins across various Binance products, including Binance Convert, Spot Trading, and Wallet services.
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Specifically, users cannot engage in new products or services involving Unauthorised Stablecoins. Rewards from the Rewards Center, Campaigns, and Referrals will be altered to be distributed in Regulated Stablecoins, BNB, or other non-stablecoin tokens.
Further Changes Ahead
The biggest crypto exchange will cease its Spot Copy Trading for EEA users starting from June 29. Users are advised to close their positions and transfer funds to their respective Spot Wallets before the specified date and time.
New borrowings and transfers of Unauthorised Stablecoins as collateral into users’ Margin Wallets will also be blocked under the new regulation. However, existing Margin loans will remain unaffected and will not be subjected to forced liquidation until further information.
Other Services including Binance’s Launchpad, Launchpool, Simple Earn, Loans & VIP Loans, Auto-Invest, Dual Investment, Cloud Mining, Binance Pay, Send Cash, Red Packet, NFT purchases, Spend To Earn, Gift Cards, Web3 Wallet – Earn Section, P2P, and OTC trades will also face specific restrictions related to Unauthorised Stablecoins.