Binance to limit certain stablecoins to comply with EU crypto rules

Cryptocurrency exchange Binance is preparing to restrict certain stablecoins in the European Union to comply with the new Crypto Asset Markets Regulation (MiCA).

The regulation, which will come into force at the end of June, aims to ensure robust supervision of stablecoins.

Binance is migrating its users from unauthorized stablecoins to regulated stablecoins.

This move highlights the increasing regulatory scrutiny on the cryptocurrency market within the European Economic Area (EEA) and is set to impact the future of stablecoin usage.

MiCA’s aim is to support investor protection and promote the presence of the euro in crypto transactions, which currently constitute a small part of the market.

Binance plans to implement a “sale only” policy for non-compliant stablecoins, redirecting users to Bitcoin, Ether, regulated stablecoins or fiat currencies. The specific stablecoins that will be restricted have not been announced, but Binance stated that only a select few meet the MiCA criteria.

The exchange’s proactive stance on compliance includes recent structural changes to comply with French regulations and is indicative of the broader regulatory trend in Europe.

The MiCA framework, along with new anti-money laundering regulations (AMLR), will require cryptoasset service providers to conduct comprehensive due diligence and report suspicious activity.