Binance Restricts European Services Ahead of MiCA Deadline

BySamson Ononeme

Jun 26, 2024 , ,
Binance leads compliance with EU's MiCA framework, implementing changes to stablecoin services and trading options for European users.

Key Insights

  • Binance implements service restrictions for European users ahead of June 30 MiCA regulation deadline.
  • While not delisting any stablecoins, Binance limits their use in various services such as Binance Convert, margin trading, and investment products for EEA users.
  • The exchange advises European users to review holdings and consider transitioning to regulated stablecoins or other digital assets before the deadline.

LONDON (MarketsXplora) – Cryptocurrency exchange Binance has begun implementing restrictions on its European users ahead of new EU regulations, catching many off guard as they logged into their mobile apps on Wednesday.

The world’s largest crypto exchange by volume is taking pre-emptive action before the Markets in Crypto-assets (MiCA) regulation comes into force on June 30.

New EU crypto regulations prompt Binance to adjust services. Source: Binance

The move has already resulted in the suspension of certain services, including copy trading, for users in the European Economic Area (EEA).

“We are encouraging impacted Lead Traders and Copy Traders to close their positions and transfer funds to their Spot Wallets by June 27, 23:59 UTC+3,” a Binance spokesperson told MarketsXplora.

Any remaining open positions after this deadline will be automatically closed at market price.

The MiCA framework, introduced a year ago, aims to govern the digital assets industry across the EU and EEA. Its implementation is set to significantly impact the products and services offered by European cryptocurrency exchanges, particularly concerning stablecoins.

Read also! Binance to Migrate UAE Users to Regulated Dubai Platform

While Binance has confirmed it will not delist any stablecoins, it is limiting their use in various services. From June 30, EEA users will face restrictions on buying unauthorized stablecoins through Binance Convert, new borrowings in margin trading, and subscriptions to products like Simple Earn, Binance Loans, and Dual Investment.

Additionally, peer-to-peer and over-the-counter purchases of unauthorized stablecoins will be restricted. However, spot trading pairs with these stablecoins will remain available, and users can continue to deposit and withdraw them from their Binance wallets.

“Stablecoins not regulated under MiCA, including USDT and others, will still be available for trading on Binance’s spot market and for deposits and withdrawals,” the exchange clarified in a recent email to European users.

In a related move, Binance is altering its rewards system. From June 24, referral commissions for spot and margin trading will be paid in BNB, the exchange’s native token, rather than stablecoins.

The exchange has advised its European user base to review their holdings and consider transitioning to regulated stablecoins or other digital assets before the June 30 deadline.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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