This announcement applies to users in the European Economic Area (EEA) only.

Dear Binance members,

On 30-06-2024 (UTC+3), the rules of the new Digital Assets Act (MiCA) for stablecoins will enter into force in the European Economic Area (EEA). This will be the first step towards entering a new regulatory framework and will have a tangible impact on the EEA stablecoin market. Since it is important for all users to understand the impact of the upcoming changes, here are some key details about the new rules and how Binance will implement them.

Compliance with the Stablecoin Rule in the Digital Assets Act (MiCA) - Product impacts on users in the European Economic Area

Starting from 30-06-2024 (UTC+3), stablecoins will be regulated in the European Economic Area. Some existing stablecoins, such as USDT, may not be regulated and may therefore be subject to some restrictions. They will be classified as “permissionless stablecoins.”

These transitional measures aim to allow users in the EEA to switch to regulated stablecoins, avoid any market disruption, and comply with the stablecoin rules of the Digital Assets Act (MiCA). 

Binance will ban unauthorized stablecoins for EEA users across its products, effective from 30-06-2024 (UTC+3).  Please note that Binance will not remove any stablecoins until further notice and they will remain available on Binance Convert, Instant Trading Service and Wallet: 

  • Binance Convert: Unauthorized stablecoin conversion functions will be maintained in “Sell Only” mode. This means that users in the EEA can sell unauthorized stablecoins for: other digital assets (such as Bitcoin or Ethereum), regulated stablecoins, or approved local currencies (based on the availability of approved local currency channels in each user's jurisdiction). This will allow users to easily switch to licensed stablecoins. Purchase of unauthorized stablecoins will no longer be available on the Convert platform as of 06-30-2024 (UTC+3). 

  • Spot Trading: Unauthorized stablecoin spot trading pairs remain available until further notice. During this period, digital asset trading pairs with unauthorized stablecoins are available alongside trading pairs with regulated stablecoins.

  • Wallet: Wallet and escrow services for unauthorized stablecoins remain available. Users will be able to withdraw or deposit stablecoins to or from the Binance wallet. 

General product limitations

Apart from the above mentioned products of Binance Convert, Instant Trading and Wallet, Binance will be adding new restrictions across all its products. These restrictions will prevent users from participating in new products or services that include unauthorized stablecoins. Please note that product-specific effects other than general restrictions will become effective by 2024-06-30 (UTC+3), unless otherwise noted below.

  • Rewards

    • Rewards will be changed via the platform, such as from the Reward Center and Promotions, to BNB, other NFT tokens or regulated stablecoins as they become available.

    • If users have an existing coupon for any of the unauthorized stablecoins, they can redeem it until its expiration date.

  • Referral commissions/discounts 

    • Starting 06-24-2024, referral commissions or discounts for spot and borrowed trading will be paid in BNB. After the commission is due, it will be calculated and converted into BNB on an hourly basis. Once the transfer is completed, the BNB commission will be credited to the user's instant account within 6 hours.

  • Instant copy trading

    • Spot copy trading will be suspended for users in the EEA on 26-06-2024, before 23:59 (UTC+3).

    • Affected master traders and copy traders are encouraged to close their positions in copy trading activities and transfer their funds to their relevant spot wallets before 27-06-2024 at 23:59 (UTC+3).

    • After 27-06-2024 at 23:59 (UTC+3), all open trades on spot copy trading will be closed at the market price – and any assets  remaining in the copy trader’s spot trading subaccount will be returned to the copy trader’s spot wallet before 28- 06-2024 at 23:59 (UTC+3), taking into account any unsettled dividends, which will be paid to the relevant lead trader.

  • Borrowing trading

    • Starting from 30-06-2024 (UTC+3), Binance will block new borrowings of unauthorized stablecoins and transfer of unauthorized stablecoins as collateral for borrowing to the borrowing wallet of users in the EEA across all trading product offerings Borrowing. 

    • Depending on the specific carry trading product, it may be necessary for users to utilize alternative carry trading security and/or reduce their trades to prevent liquidations.

    • Existing leveraged trading loans remain unchanged and will not be subject to forced liquidation until further notice. Affected leveraged traders are encouraged to close leveraged loans involving unauthorized stablecoins. 

    • Existing balances of unauthorized stablecoins in the borrowed trading wallet can continue to be used for trading until further notice.

  • Launch pad and launch complex

    • The FDUSD aggregator will no longer be available to users in the European Economic Area. 

  • Simple Earn 

    • New subscriptions, including the auto-subscription feature, involving unauthorized stablecoins in Simple Earn Flexible Reserved Products will be prohibited (i.e. this will apply to products such as GNS Reserved Products with rewards in DAI) as of 01-07- 2024 (UTC+3).

    • All existing subscriptions on Simple Earn products that include unauthorized stablecoins remain unchanged and will not be subject to forced redemption, until further notice. 

  • Binance Loans and VIP Loans

    • Underwriting of new loans and any new collateral involving unauthorized stablecoins will be prohibited as of 01-07-2024 (UTC+3).

    • Existing loans involving unauthorized stablecoins will be held for a limited period until maturity and will not be subject to forced repayment.

    • Unauthorized stablecoin guarantees and loans remain open until repayment. 

    • Unauthorized stablecoin top-ups to improve LTV (loan-to-value) when using unauthorized stablecoins as collateral remain unaffected until further notice to avoid forced liquidation.

  • Automatic investment

    • New subscriptions to automatic investing using unauthorized stablecoins will be prohibited. 

    • Existing plans involving the sale of unauthorized stablecoins can continue unaffected until the unauthorized stablecoin balances in the Earn Wallet run out.

    • Existing plans involving unauthorized purchases of stablecoins will no longer be available to users in the European Economic Area.

  • Double investment

    • New subscriptions to dual investment products using unauthorized stablecoins will be banned as of 01-07-2024 (UTC+3).  

    • Existing subscriptions on dual investment products using unauthorized stablecoins will remain in effect until maturity and will be normally settled accordingly. 

  • Cloud mining

    • New subscriptions involving unauthorized stablecoins will be banned as of 01-07-2024 (UTC+3).

    • The use of unauthorized stablecoins as a method of payment will not be permitted.

  • Binance Pay

    • Users in the EEA will no longer be able to send or receive any unauthorized stablecoins as of 30-06-2024 (UTC+3).

    • Users in the EEA will no longer be able to use Binance Pay using any unauthorized stablecoins as of 30-06-2024 (UTC+3).

    • All unauthorized stablecoin payments to recipients in the EEA will be blocked as of 30-06-2024 (UTC+3).

    • Any refunds for users in the European Economic Area can be processed in Euros (EUR). 

  • Send money

    • Transactions involving any unauthorized stablecoins will be banned as of 2024-06-30 (UTC+3). 

  • Red conditions

    • Users in the EEA will no longer be able to create or receive any Red Envelopes containing unauthorized stablecoins as of 30-06-2024 (UTC+3).

    • Red conditions containing unauthorized stablecoins acquired before 2024-06-30 (UTC+3) remain refundable.

    • Refunds are permitted for expired red envelopes received before 06-30-2024 (UTC+3).

  • NFT Tokens (Non-Fungible Tokens)

    • NFT purchases involving unauthorized stablecoins will be banned as of 2024-06-30 (UTC+3). 

  • Spend and earn

    • Existing USDT rewards earned before 2024-06-30 (UTC+3) can still be distributed to users in the EEA after 2024-06-30 (UTC+3). 

  • Gift cards 

    • Purchases or redemptions of gift cards for users in the EEA will only be available in regulated stablecoins or other digital assets from 30-06-2024 (UTC+3).

    • Gift cards minted in unauthorized stablecoins before 06-30-2024 (UTC+3) can be redeemed to a wallet in the original stablecoin and redeemed into regulated stablecoins or a select group of other digital assets.

  • Web 3 Wallet - Earn's suite of products

    • Adding new coins to lending protocols involving unauthorized stablecoins will be prohibited in the simple yield zone before 06-29-2024 (UTC+3).

    • All active trades within the simple returns area will remain unchanged until further notice. 

  • Buy digital currencies using approved local currencies

    • Purchasing unauthorized stablecoins using supported local currencies and credit cards will remain temporarily available via the Buy Cryptocurrency page, but it may take up to 48 hours for stablecoins to be added due to changes in how cryptocurrencies are purchased.

  • P2P trading 

    • Purchases of unauthorized stablecoins via P2P will be prohibited; While the sale of unauthorized stablecoins will remain available via P2P.

  • Binance portal for external trades

    • Unauthorized purchases of stablecoins via the Binance portal for external transactions will be blocked. 

    • External private position trading involving unauthorized stablecoins will remain available in sell-only mode similar to the Binance Convert platform.

For inquiries and more information, please do not hesitate to contact our Binance Customer Service Agents.

Note: There may be a conflict between the translated version and this original English article. In this case, please refer to this original version for the most current or accurate information about the areas giving rise to any conflict.

thanks for your support!

Binance Team

2024-06-03

Note: This announcement was last updated on 06-20-2024 to add more clarifications about the general product restrictions. Clarifications were also added regarding spot trading restrictions on 06-12-2024.

Disclaimer: In compliance with the requirements of the Digital Assets Act (MiCA), as of 30-06-2024, unauthorized stablecoins are subject to specific restrictions for users in the European Economic Area. For more information, please click here.