Key Takeaways
The new stablecoin rules imposed by the European Union's Markets in Crypto-Assets (MiCA) framework will come into effect on June 30, 2024, impacting the stablecoin and broader digital asset markets across the European Economic Area (EEA). This blog outlines Binance's approach to complying with these new regulations.
Binance will limit the availability of unauthorized stablecoins for EEA users, implementing gradual changes and product restrictions to ensure compliance and minimize market disruptions.
Binance's approach aims to smoothly achieve MiCA's objectives by gradually transitioning users from unauthorized stablecoins to regulated stablecoins as more regulated stablecoins become available on the market.
What Are the Stablecoin Rules Under MiCA?
Starting June 30, 2024, MiCA requires certain stablecoin activities to be undertaken exclusively by electronic money institutions (EMIs) and credit institutions (or, more simply: banks).
Essentially, this means that in the EEA, only EMIs and banks will be able to:
- Issue/mint stablecoins
- Promote offers to encourage the purchase of stablecoins
- Request trading platforms to list their stablecoins.
