Binance, the world’s largest cryptocurrency exchange, has announced that it will soon impose restrictions on “unregulated” stablecoins in the European Union market.
In its latest statement, the exchange mentioned that the regulations on stablecoins under the EU’s Markets in Crypto-Assets (MiCA) legislation will come into effect by the end of June. As stablecoins will begin to be regulated in Europe, only stablecoins issued by “regulated companies” will be open to the public in the future. Therefore, some existing stablecoins may not meet this classification and will face certain restrictions.
However, Binance did not explicitly specify in the statement which stablecoins belong to the category of “unregulated.” It can be expected that the world’s largest stablecoin, USDT, will likely be classified as “unregulated.” In fact, as early as March of this year, OKX announced the delisting of USDT trading pairs in the European market to comply with MiCA regulatory requirements.
Nevertheless, Binance’s actions may not have a significant impact on the market in the short term, as the exchange emphasized in the statement that it will adopt a “phased” strategy to adapt to the changes in European stablecoin regulation to avoid market confusion. For example, spot trading pairs of “unregulated stablecoins” will still remain open, and custody and wallet services for stablecoins will also be maintained (users will still be able to deposit or withdraw stablecoins from the Binance wallet).