Binance to Limit Stablecoin Offerings as New MiCA Laws Close In

The exchange has announced plans to reform its stablecoin offerings in the EU as new MiCA regulations take effect.

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  • Crypto exchange Binance will restrict its stablecoin offerings in the EU.
  • Binance will phase in the new implementations for an easy user transition
  • The exchange is strengthening compliance with regulatory standards with across the globe.

Crypto regulatory standards worldwide are constantly evolving, and the European Parliament has recently implemented stricter rules aimed at increasing oversight of the asset class and ensuring investor protection.

Among these changes are new stablecoin regulatory standards, which are now prompting service providers to review their offerings.

Binance Reforms EU Stablecoin Access

According to a Monday, January 3, 2024 statement, the exchange will reshuffle its stablecoin offering within the European Union to align with the upcoming EU’s Markets in Crypto-Assets Regulation (MiCA).

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This will include restricting “unregulated” stablecoins within the region, which is expected to take effect upon the implantation of the new rules at the end of June.

The announced overhaul has raised questions about its impact on stablecoins and whether major tokens will be removed. Addressing the concerns, Binance CEO Richard Teng clarified that while unauthorized stablecoins will not be delisted, their availability will be limited for EEA users on certain products. 

This will include services such as Launchpool and Earn, for which alternatives with regulated stablecoins will be provided. The exchange also added that more regulated stablecoins are expected to roll out over the coming months, which would allow for more offerings in line with compliance standards.

On the Flipside

  • Former Binance CEO Changpeng Zhao is currently serving a four-month sentence for regulatory violations.
  • The incoming MiCA effect could result in a major stablecoin exodus from the region.
  • Crypto exchange Kraken recently announced it is considering the delisting of Tether’s USDT.

Why This Matters

The new MiCA regulations will reform stablecoin offerings in the European Union and Binance’s preparations will help the exchange and its users adjust to these new regulatory standards.

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Read more about the regulatory standards in the EU and evolving MiCA laws:
Is Crypto Doomed in the EU? New MiCA Rules Explained 

Here’s how this Chinese investor lost millions in stablecoins to a cyber attack on Binance:
Chinese Investor Raises Alarm over $1M Binance Hack

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.