Binance readies for MiCA regulations, enhances stablecoin approach

Binance is preparing for the implementation of the Markets in Crypto-Assets Regulation (MiCA) rules concerning stablecoins at the end of this month. The cryptocurrency exchange has informed its users in the European Economic Area about the changes that will affect their services.
MiCA has been established to establish consistent regulations for crypto asset issuers that have not been previously regulated in the European Union. In response, Binance has categorized stablecoins as either “regulated” or “unauthorized” based on their compliance with the new rules.
Binance plans to gradually transition its users from unauthorized stablecoins to regulated stablecoins as more regulated options become available in the market. Currently, only a few stablecoins meet the requirements set by MiCA.
To comply with MiCA requirements, Binance will primarily rely on a “sell-only” strategy. This strategy will particularly apply to the Binance Convert function, which will only be available for unauthorized stablecoins in sell mode.
Binance, which has a global user base of 196.6 million, believes that MiCA could have a positive impact on the crypto and stablecoin industry. MiCA was passed into law in May 2023, and Binance is not the first exchange to take action ahead of its implementation. In March, OKX delisted Tether in Europe without explicitly mentioning MiCA. In September, Binance denied reports that it planned to delist all stablecoins in Europe, based on a quote from an interview with Binance France legal head Marina Parthuisot.
Opinions from experts on the impact of MiCA on the European crypto market have been divided, but many have expressed optimism about the law, particularly regarding stablecoins. Joachim Schwerin, an economist at the European Commission, stated that MiCA could make the European market more receptive to stablecoins as a whole.