Binance, a leading cryptocurrency exchange, announces significant changes to its stablecoin policies in Europe. By the end of June, the platform will limit access to "unauthorized" stablecoins in compliance with the new MiCA stablecoin regulations in the European Economic Area (EEA).
Binance Adapts to New Regulations: Transitioning from Unauthorized to Regulated Stablecoins
Under the new rules, only regulated entities can issue and offer stablecoins to the public, known as "Regulated Stablecoins." This classification leaves several existing stablecoins unable to meet the requirements, leading to their categorization as "Unauthorized Stablecoins" and subsequent restrictions.
To ensure a smooth transition and adhere to MiCA stablecoin regulations, Binance will gradually restrict access to Unauthorized Stablecoins starting June 30. This affects various products and services, including Binance Convert, Spot Trading, and Wallets, across the EEA.
Binance will adjust rewards distribution, shifting to Regulated Stablecoins, BNB, or other non-stablecoin tokens. Spot Copy Trading for EEA users will cease on June 29, with users advised to close positions and transfer funds beforehand.
Binance Implements Restrictions on Unauthorized Stablecoins: Changes in Margin Trading and Service Offerings
New borrowings and transfers of Unauthorized Stablecoins as collateral into Margin Wallets will be halted. Existing Margin loans remain unaffected, avoiding forced liquidation until further notice. Margin traders are urged to close loans involving Unauthorized Stablecoins.
Several Binance services, including Launchpad, Loans, and NFT purchases, will experience specific restrictions or changes related to Unauthorized Stablecoins.
As of now, Binance's native token, BNB, trades at $628, showing a 4.5% gain in the past 24 hours amidst a broader market recovery, nearing its yearly high of $642 in mid-March.
Binance adjusts stablecoin access in Europe to comply with new regulations, impacting various services and products across its platform.