Binance Cracks Down on Unregulated Stablecoins in the EU

In a move prompted by new European regulations, cryptocurrency giant Binance is shaking up the stablecoin market within the EU. Starting at the end of June, Binance will restrict access to certain stablecoins deemed “unauthorized” by the European Union. To ease the transition for users, Binance will implement a “phased approach,” encouraging them to switch their holdings to “regulated” stablecoins.

The cryptocurrency exchange kingpin, Binance, is making waves in the European Union (EU) with a crackdown on unregulated stablecoins. Citing the upcoming Markets in Crypto-Assets Regulation (MiCA), Binance announced restrictions on these digital tokens pegged to traditional currencies.

This move, effective from June’s end, marks the first step towards a more regulated European crypto market. Binance expects a significant impact, with only stablecoins issued by licensed companies surviving the regulatory purge. While the exchange remained tight-lipped about specific “unapproved” coins, they hinted at a dedicated blog post outlining their stance.

Binance acknowledges the current scarcity of regulated stablecoins, potentially leading to liquidity issues. However, they express optimism about the future, anticipating an influx of compliant tokens in the coming months. This, they believe, will pave the way for a complete market shift towards regulated stablecoins, ultimately achieving MiCA’s regulatory goals.

To navigate the shifting regulatory landscape in Europe, Binance announced a “phased” plan for users holding “unapproved” stablecoins. According to the exchange, users will have the flexibility to convert these holdings into established cryptocurrencies like Bitcoin and Ethereum, compliant stablecoins, or even traditional fiat currency. This flexibility aims to ease the transition for users before the June 30th deadline, after which purchasing these “unapproved” stablecoins will be off the table within the EU. This move comes amidst a leadership shakeup at Binance, with new CEO Richard Teng seemingly prioritizing a more cooperative approach with regulators, a possible response to the four-month prison sentence handed down to former CEO Changpeng Zhao in April.

Learn from market wizards: Books to take your trading to the next level.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Neil Woodfine

• 

  Charles Russell-Pavier

• 

  ForexSQ

• 

  Lawrence Gash