Binance Warned: European Coin Issuer is Withdrawing from the Market

Lugh, a stablecoin producer operating in Europe, has decided to withdraw from the market.

MiCA legislation, which came into force in the European Union this summer, has begun to affect stablecoin issuers.

Gave time to users

“As LUGH, MiCA has ceased the issuance of the EURL stablecoin due to its implementation and our commitment to the law, and guarantees that it will convert all EURLs in circulation into cash by August 30, 2024,” the Paris-based company said.

“All EURLs are guaranteed 1:1 by our reserve account at Société Générale and are audited monthly by Deloitte,” the company explained.

EURL holders can use the company's site to receive fiat money in exchange for their stablecoins.

Binance and Tether warning

Binance, the world's largest cryptocurrency exchange, announced that it would impose restrictions on some stablecoins in the European market due to MiCA regulations. It was stated that they will not be completely removed from the stock exchange, but some products and services will be limited.

Binance did not share any details about which of these it was.

Paolo Ardoino, CEO of Tether, the issuer of USDT, the largest stablecoin by market value, expressed concerns about MiCA regulations this week. Ardoino said there were still some problematic clauses in MiCA and that further consultation was needed before the legislation was introduced.