As of June 30, 2024, the European Economic Area (EEA) will impose new regulations within the Markets for Crypto Assets (MiCA) framework, specifically targeting stablecoins. Binance, one of the world's largest cryptocurrency exchanges, plans to roll out sweeping changes to ensure compliance, affecting everything from trading to rewards.
Only regulated companies can issue and offer stablecoins, called regulated stablecoins. Many existing stablecoins will not meet these criteria and will be classified as unauthorized stablecoins, which will face various restrictions on the Binance platform, the cryptocurrency exchange said in a statement on its website.
Starting June 30, unauthorized stablecoins will switch to “sell only” mode on Binance. EEA users can sell these stablecoins in exchange for other digital assets such as Bitcoin
Bitcoin
While some may still wonder what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to these revolutionary decentralized digital assets, nor to their blockchain technology. In fact, we've come a long way since Florida resident Laszlo Hanicz made the first official BTC trading transaction with a real company by trading 10,000 BTC for 2 pizzas at his local Papa John's. Now one could argue with that
While some may still wonder what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to these revolutionary decentralized digital assets, nor to their blockchain technology. In fact, we've come a long way since Florida resident Laszlo Hanicz made the first official BTC trading transaction with a real company by trading 10,000 BTC for 2 pizzas at his local Papa John's. Now one could argue with that
Read this termOr regulated stablecoins or fiat currencies where available. However, purchasing unauthorized stablecoins will no longer be an option.
Spot trading pairs containing unauthorized stablecoins will remain temporarily active, coexisting with those involving regulated stablecoins. This transition period aims to reduce market disruption. However, users can still withdraw or deposit unauthorized stablecoins from their Binance wallets.
Under the upcoming MiCA rules, some stablecoins will face restrictions as unauthorized stablecoins.
Binance will not immediately remove any unauthorized stablecoins, but will limit their availability to EEA users to only certain products, such as Launchpool and Earn, and will suggest…
— Binance (@binance) June 3, 2024
In addition to these specific impacts on its products, Binance will implement broader restrictions to comply with MiCA rules. Rewards will shift from permissionless stablecoins to regulated stablecoins, BNB or other tokens. Existing coupons can be claimed until they expire.
Binance has also made changes to its instant copy trading services for the EEA region. This service will end by June 29, 2024. The exchange has urged users to close positions and transfer funds back to spot wallets before this date to avoid automatic closure.
Payments and transactions
New loans and guarantees involving unauthorized stablecoins will be banned. However, existing loans and holdings in margin portfolios will not be affected at this time. Binance Pay will be restricted unauthorizedly Stable coin
Stablecoins
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this term
Transactions. Users can no longer send, receive, or use these stablecoins for payments. Where necessary, refunds will be processed in Euros.
Platforms such as P2P trading, Binance OTC, Web 3 Wallet's profit section, and NFT purchases will also impose restrictions on unauthorized stablecoins. With these new changes, Binance aims to align its services with the MiCA regulatory landscape, and promote a compliant and stable cryptocurrency market in the EEA.
As of June 30, 2024, the European Economic Area (EEA) will impose new regulations within the Markets for Crypto Assets (MiCA) framework, specifically targeting stablecoins. Binance, one of the world's largest cryptocurrency exchanges, plans to roll out sweeping changes to ensure compliance, affecting everything from trading to rewards.
Only regulated companies can issue and offer stablecoins, called regulated stablecoins. Many existing stablecoins will not meet these criteria and will be classified as unauthorized stablecoins, which will face various restrictions on the Binance platform, the cryptocurrency exchange said in a statement on its website.
Starting June 30, unauthorized stablecoins will switch to “sell only” mode on Binance. EEA users can sell these stablecoins in exchange for other digital assets such as Bitcoin
Bitcoin
While some may still wonder what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to these revolutionary decentralized digital assets, nor to their blockchain technology. In fact, we've come a long way since Florida resident Laszlo Hanicz made the first official BTC trading transaction with a real company by trading 10,000 BTC for 2 pizzas at his local Papa John's. Now one could argue with that
While some may still wonder what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to these revolutionary decentralized digital assets, nor to their blockchain technology. In fact, we've come a long way since Florida resident Laszlo Hanicz made the first official BTC trading transaction with a real company by trading 10,000 BTC for 2 pizzas at his local Papa John's. Now one could argue with that
Read this termOr regulated stablecoins or fiat currencies where available. However, purchasing unauthorized stablecoins will no longer be an option.
Spot trading pairs containing unauthorized stablecoins will remain temporarily active, coexisting with those involving regulated stablecoins. This transition period aims to reduce market disruption. However, users can still withdraw or deposit unauthorized stablecoins from their Binance wallets.
Under the upcoming MiCA rules, some stablecoins will face restrictions as unauthorized stablecoins.
Binance will not immediately remove any unauthorized stablecoins, but will limit their availability to EEA users to only certain products, such as Launchpool and Earn, and will suggest…
— Binance (@binance) June 3, 2024
In addition to these specific impacts on its products, Binance will implement broader restrictions to comply with MiCA rules. Rewards will shift from permissionless stablecoins to regulated stablecoins, BNB or other tokens. Existing coupons can be claimed until they expire.
Binance has also made changes to its instant copy trading services for the EEA region. This service will end by June 29, 2024. The exchange has urged users to close positions and transfer funds back to spot wallets before this date to avoid automatic closure.
Payments and transactions
New loans and guarantees involving unauthorized stablecoins will be banned. However, existing loans and holdings in margin portfolios will not be affected at this time. Binance Pay will be restricted unauthorizedly Stable coin
Stablecoins
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this term
Transactions. Users can no longer send, receive, or use these stablecoins for payments. Where necessary, refunds will be processed in Euros.
Platforms such as P2P trading, Binance OTC, Web 3 Wallet's profit section, and NFT purchases will also impose restrictions on unauthorized stablecoins. With these new changes, Binance aims to align its services with the MiCA regulatory landscape, and promote a compliant and stable cryptocurrency market in the EEA.