Binance, the popular cryptocurrency exchange, has revealed its plans to comply with the upcoming stablecoin regulations known as the Markets in Crypto Assets Regulation (MiCA). These regulations are set to come into effect on June 30 in the European Economic Area (EEA) and will impose restrictions on the issuance and offering of stablecoins, classifying them as “Regulated Stablecoins.”
To adhere to these rules, Binance will implement a phased approach and introduce limitations on various products and services related to “Unauthorized Stablecoins.” Starting June 30, Binance Convert will only allow the selling of unauthorized stablecoins, giving users the option to convert them into other digital assets, regulated stablecoins, or fiat currencies. However, spot trading pairs involving unauthorized stablecoins will still be available temporarily.
While custody and wallet services for unauthorized stablecoins will remain active, new subscriptions and services related to these stablecoins will be blocked. This will affect rewards, spot copy trading, margin trading, and other earning and loan products. Additionally, new borrowings of unauthorized stablecoins will be prohibited, although existing margin loans will will not be subjected to forced liquidation. Services like launchpad, launchpool, simple earn, and Binance Loans will also face certain limitations.
