Binance to Restrict Access to Unauthorized Stablecoins in EU Starting June 30

TL;DR

• Crypto exchange Binance is restricting access to unauthorized stablecoins in the EU due to changes to stablecoin regulation in Europe.

• Binance has encouraged users to switch to regulated stablecoins. 

Binance to Restrict Unauthorized Stablecoins in EU

On Monday, Binance, the world's largest cryptocurrency exchange by trading volume, announced that it will restrict access to unregulated stablecoins in the European Union starting June 30th. 

According to the crypto exchange, the rules for stablecoins outlined in the EU's Markets in Crypto-Assets Regulation (MiCA) will become effective at the end of the month. Binance added,

"This will be a first step entering the new regulatory framework and it will have a significant impact on the stablecoin market in the European Economic Area." 

The company further pointed out that as stablecoins become regulated entities in Europe, only those issued by regulated companies will be available on its platform. Binance added that several existing stablecoins may not fall into this category and will therefore be subject to certain restrictions. However, Binance didn’t disclose the stablecoins that fall into this category. 

The cryptocurrency exchange further revealed that it has adopted a "phased" approach to enable users to switch to regulated stablecoins. Binance will allow users to convert holdings in unregulated stablecoins to other digital assets like BTC and Ether, regulated stablecoins, and fiat currencies. 

Furthermore, Binance said its EU users will no longer be able to buy unauthorized stablecoins starting June 30.