Binance to Restrict Dealing in Certain Unapproved Stablecoins in the EU

Binance to Restrict Dealing in Certain Unapproved Stablecoins in the EU

Binance, the world's largest cryptocurrency exchange, has announced that it will restrict trading of certain stablecoins in the European Union (EU) starting July 1, 2023. This move comes in response to the European Union's Markets in Crypto-Assets (MiCA) legislation, which comes into effect on June 30, 2023. MiCA aims to regulate the crypto asset market in the EU and includes provisions related to stablecoins. Stablecoins are cryptocurrencies that are pegged to a fiat currency, such as the US dollar or euro. They are often used as a way to store value and make payments. Under MiCA, stablecoins will be subject to a number of requirements, including: They must be issued by a regulated entity They must be backed by sufficient reserves * They must be subject to regular audits Binance has stated that it will restrict trading of stablecoins that do not comply with MiCA. Spot trading pairs for these stablecoins will remain unaffected until further notice. This move by Binance is likely to have a significant impact on the stablecoin market in the EU. It is unclear how many stablecoins will be affected by the restrictions, but it is likely that some of the smaller and less well-regulated stablecoins will be forced to exit the market.