Binance Will Limit Access to Certain Stablecoins in the EU

On June 30, 2024, the new MiCA rules for stablecoins will go into effect in the European Economic Area (EEA), and crypto exchange Binance has warned its users about the upcoming restrictions.

Under these regulations, stablecoin operators must obtain a license from an EU member state’s authority and adhere to certain requirements to ensure stability of their tokens.

This includes providing full disclosure to customers, having a public business model, implementing effective governance systems, registering with the European Banking Authority, establishing a buyback mechanism, and maintaining sufficient reserves.

Binance plans to gradually limit the availability of “unregulated stablecoins” to comply with these rules and allow EEA users to switch to regulated stablecoins without causing any disruptions in the market.