Binance, the world’s leading crypto exchange, has announced that starting from the end of June, access to stablecoins considered “unregulated” by the European Union will be restricted.
This decision comes as a result of the implementation of the EU’s Markets in Crypto-Assets (MiCA) regulation, which will significantly alter the stablecoin landscape in the European Economic Area.
Under the new regulations, Binance will limit the use of stablecoins issued by unregulated entities, with Tether being one of them for sure.
The platform specified that only tokens produced by regulated companies will be accessible to the European public.
Several existing stablecoins may not fall into this category and will therefore be subject to certain restrictions.
The precise list of stablecoins considered “unregulated” has not been immediately disclosed by Binance, but Tether’s USDT has been mentioned in the article.
Progressive Adaptation Approach
To facilitate the transition to a MiCA-compliant environment, Binance is taking a gradual approach. Spot trading will remain unchanged for the time being, but many services will only offer the sale of unregulated stablecoins.
The platform will encourage users to convert their holdings of unauthorized stablecoins into other regulated digital assets, according to the options provided by Binance.
Since the conviction of former Binance CEO CZ to a four-month prison sentence in April, the new leader, Richard Teng, has been working to strengthen cooperation with regulators. This new policy is part of the company’s ongoing efforts to comply with regulatory requirements and build trust with European regulatory authorities.
