Cryptocurrency exchange Binance is set to limit certain stablecoins in the European Union to comply with the new Markets in Crypto-Assets Regulation (MiCA).
The regulation, which will be enforced at the end of June, is aimed at establishing robust oversight of stablecoins.
Binance is transitioning its users from non-authorized to regulated stablecoins.
This move highlights the increasing regulatory scrutiny in the cryptocurrency market within the European Economic Area (EEA) and is poised to influence the future of stablecoin usage.
MiCA’s objective is to bolster investor protection and promote the Euro’s presence in crypto transactions, which is currently a minor portion of the market.
Binance plans to implement a “sell-only” policy for non-compliant stablecoins, directing users towards Bitcoin, Ether, regulated stablecoins, or fiat currencies. The specific stablecoins to be restricted have not been disclosed, but Binance has indicated that only a select few meet the MiCA criteria.
The exchange’s proactive stance on compliance includes recent structural changes to align with French regulations and is indicative of the broader regulatory trend in Europe.
The MiCA framework, together with the new anti-money laundering regulations (AMLR), will require crypto-asset service providers to conduct thorough due diligence and report any suspicious activities.