Binance will ease European users’ transition from unauthorized to regulated stablecoins with a “sell-only” strategy.
As the Markets in Crypto-Assets Regulation (MiCA) for stablecoins takes effect at the end of the month, Binance is informing European Economic Area users about upcoming changes. MiCA establishes uniform rules for crypto asset issuers within the EU. In response, Binance will categorize stablecoins as “regulated” or “unauthorized” based on their compliance with these new regulations.
Gradual Transition to Regulated Stablecoins
Binance plans a smooth transition from unauthorized to regulated stablecoins as more compliant options become available. Currently, only a few stablecoins meet MiCA requirements. To comply with MiCA, Binance will use a “sell-only” strategy for unauthorized stablecoins, particularly in the Binance Convert function.
With 196.6 million users globally, Binance aims to minimize market disruptions during this transition. They emphasized avoiding potential harm from users rushing to swap stablecoin holdings amid limited exit options.
MiCA’s Impact on Crypto and Stablecoins
MiCA passed into law in May 2023, aims to create a more stable crypto market. In March, OKX preemptively delisted Tether in Europe, and Binance denied plans to delist all stablecoins in September. Opinions on MiCA’s impact are mixed, but many view it favorably, especially regarding stablecoins. European Commission economist Joachim Schwerin noted that MiCA could increase openness to stablecoins.
Binance’s proactive measures highlight the evolving regulatory landscape and the need for compliance to ensure market stability.
