Binance to restrict ‘unauthorized’ stablecoins in the EU from June 30, urges users to switch to regulated tokens
Binance, the world’s largest cryptocurrency exchange, announced that it will soon restrict the use of stablecoins deemed “unregulated” by the European Union within the European Union.
Binance said in a statement that the stablecoin rules outlined in the European Union’s Markets in Crypto Assets (MiCA) will take effect at the end of June. “This will be the first step into the new regulatory framework, which will have a significant impact on the stablecoin market in the European Economic Area,” the statement said.
Binance said that as stablecoins become regulated in Europe, only tokens issued by “regulated companies” will be available to the public. The company also said: “Several existing stablecoins may not fall into this category and will therefore be subject to certain restrictions.”
Binance did not immediately respond to a request for comment when asked to elaborate on which stablecoins fall into the “unregulated” category. Binance also laid out a “phased” approach in its statement to comply with changes in European stablecoin regulation. According to Binance’s statement, the exchange will initially allow users to exchange “unauthorized” stablecoins for other digital assets such as Bitcoin and Ethereum, regulated stablecoins or fiat currencies.
The exchange said that from June 30, “unauthorized” stablecoins will no longer be available for purchase in Europe.
Since Binance’s former CEO Changpeng Zhao was sentenced to four months in prison in April, the company’s new leader Richard Teng has been working to show that the company wants to strengthen cooperation with regulators.
At this time, Binance’s CZ has begun serving his sentence at a low-security federal prison in Lompoc, California.
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