Binance Imposes Restrictions on Unauthorized Stablecoins to Comply with MiCA Regulations

Cryptocurrency exchange Binance announced its strategy on Monday to comply with the upcoming Markets in Crypto-Assets (MiCA) stablecoin regulations, set to take effect across the European Economic Area on June 30. These regulations will restrict the issuance and provision of stablecoins to regulated companies, classifying them as “regulated stablecoins.”

Changes to Unauthorized Stablecoin Availability

To adhere to these new rules, Binance will implement phased changes to the availability of “unauthorized stablecoins” and impose restrictions on various products and services involving them. Starting June 30, Binance Convert will adopt a “sell-only” mode for unauthorized stablecoins, allowing users to convert these stablecoins into other digital assets, regulated stablecoins, or fiat currencies. Spot trading pairs involving unauthorized stablecoins will remain temporarily available.

Custody and wallet services for unauthorized stablecoins will continue, enabling deposits and withdrawals. However, new subscriptions and services involving unauthorized stablecoins will be blocked, affecting rewards, spot copy trading, margin trading, and other income and lending products.

Additional Restrictions on Unauthorized Stablecoins

New borrowing of unauthorized stablecoins will be prohibited, although existing margin loans will not face forced liquidation. Additionally, services such as Launchpad, Launchpool, Simple Earn, and Binance Loans will also face restrictions.

By implementing these measures, Binance aims to ensure full compliance with the MiCA regulations, prioritizing the legal requirements and security of its users within the European Economic Area.