Binance, a leading cryptocurrency exchange, has announced it will discontinue trading pairs involving stablecoins that do not comply with the European Union’s Markets in Crypto-Assets regulation for users in the European Economic Area by March 31, 2025. This decision aligns with the EU’s efforts to establish a standardized regulatory framework for crypto-assets, aiming to enhance transparency and consumer protection.
The affected stablecoins include Tether , First Digital USD , TrueUSD , Pax Dollar , Dai , Augmint Euro Token , TerraUSD , TerraClassicUSD , and PAX Gold . Binance has advised its EEA users to convert their holdings in these non-compliant stablecoins to those that meet MiCA standards, such as USD Coin and Euro Coin , or directly to euros.
The MiCA regulation, which came into force in June 2023, seeks to create a cohesive regulatory environment for crypto-assets across the EU. It introduces stringent requirements for stablecoin issuers, including maintaining adequate reserves and adhering to transparency and consumer protection standards. Stablecoins are categorized under MiCA as either e-money tokens , which reference a single official currency, or asset-referenced tokens , which are linked to multiple assets.
Circle’s USD Coin and Euro Coin are among the few stablecoins that have achieved MiCA compliance. This compliance ensures their continued availability and use within the EEA. In contrast, prominent stablecoins like Tether and MakerDAO’s Dai have not met MiCA requirements, leading to their delisting from platforms operating within the EU.
Binance’s move is part of a broader trend among cryptocurrency exchanges to align with the new regulatory landscape. Other exchanges, such as Crypto.com and Kraken, have also announced plans to delist non-compliant stablecoins to adhere to MiCA standards. For instance, Crypto.com has outlined its intention to halt deposits of certain stablecoins by January 31, 2025, with full delisting scheduled for March 31, 2025. Similarly, Kraken is preparing to remove Tether and four other stablecoins from its platform in the EEA to comply with the regulations.
The European Securities and Markets Authority has set a deadline of March 31, 2025, for digital asset firms to ensure compliance with MiCA. This regulatory push underscores the EU’s commitment to fostering a secure and transparent crypto market, mitigating risks associated with stablecoins, and protecting investors.
MiCA’s implementation has also spurred the development of new compliant stablecoins. Dutch fintech company Quantoz Payments, for example, is set to launch two stablecoins, EURQ and USDQ, both licensed by the Dutch Central Bank as e-money tokens. These developments indicate a shift towards regulated digital finance in Europe, providing consumers with more secure and compliant options for digital payments.
Arabian Post – Crypto News Network
