- According to Binance, in order to comply with the new stablecoin laws in Europe, a phased approach will be implemented.
According to a statement issued on June 3, Binance will restrict the sale of “unregulated stablecoins” in the EU by June 30 in accordance with the impending Markets in Crypto-Assets Regulation (MiCA).
According to the cryptocurrency exchange, a number of stablecoins may not adhere to the new rules and may be subject to limitations. It did not, however, indicate which stablecoins would be impacted.
Phased Strategy
Binance intends to adhere to the new stablecoin laws in Europe by using a phased strategy.
Users will be able to exchange their holdings in unregulated stablecoins for fiat money, regulated stablecoins, Bitcoin, Ethereum, and other digital assets on the market.
Furthermore, Binance will impose limitations on all of its products, prohibiting customers from using any new services or products that involve unapproved stablecoins.
Future MiCA rules
This month will see the enactment of stablecoin regulations, and by the end of 2024, the European Union’s MiCA legislation should be completely functioning.
In accordance with the current EU Electronic Money Directive (EMD), stablecoins may only be issued by Electronic Money Institutions (EMIs) and credit institutions. In order to comply with these restrictions, major cryptocurrency exchanges like Kraken and OKX may have to remove Tether’s USDT stablecoin off their systems.
On the other hand, Circle and its USDC stablecoin are in a good position to fulfill these demands. Circle obtained conditional registration in France and then applied for an EMI license in December 2023. This action is a component of Circle’s plan to comply with the EU’s MiCA regulations.
Circle’s Chief Strategy Officer, Dante Disparte, underlined the importance of MiCA.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
