Binance, the world’s largest cryptocurrency exchange by trading volume, announced it will soon restrict access to “unregulated” stablecoins within the European Union.
The restrictions align with the EU’s Markets in Crypto-Assets Regulation (MiCA), set to take effect at the end of June.
Binance’s statement emphasized that this move marks a significant step in adopting the new regulatory framework, impacting the stablecoin market in the European Economic Area.
Only stablecoins issued by “regulated companies” will remain available to the public, while several existing stablecoins not meeting these criteria will face restrictions.
When queried about which stablecoins are deemed “unregulated,” Binance did not provide immediate clarification.
The company outlined a phased approach to comply with the new regulations, allowing users to convert “unauthorized” stablecoins into other digital assets like Bitcoin, Ether, regulated stablecoins, or fiat currency. From June 30, purchasing “unauthorized” stablecoins in Europe will no longer be possible.
Since the sentencing of former Binance CEO Changpeng Zhao to four months in prison in April, new CEO Richard Teng has been actively seeking to enhance the company’s cooperation with regulators.
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