Binance readies itself for MiCA regulations, enhances stablecoin approach

Binance is preparing to comply with the upcoming regulations on stablecoins known as the Markets in Crypto-Assets Regulation (MiCA). The cryptocurrency exchange has informed its users in the European Economic Area about the changes that will affect their services.
MiCA aims to establish standardized rules for crypto asset issuers that have not yet been regulated in the European Union. In response, Binance will categorize stablecoins as either “regulated” or “unauthorized” based on their compliance with the new rules.
To ensure a smooth transition, Binance plans to gradually shift users from unauthorized stablecoins to regulated stablecoins as more options become available in the market.
At present, there are no official rulings on which stablecoins are compliant with MiCA. Binance stated that only a few stablecoins currently meet the requirements.
To comply with MiCA, Binance will primarily rely on a “sell-only” strategy. This strategy will apply specifically to the Binance Convert function, where “convert functions for unauthorized stablecoins will only be available for selling.”
Binance, which boasts 196.6 million users worldwide, expressed its views on MiCA in a blog post. The law was passed in May 2023. While Binance may not be the first exchange to take action before its implementation, it has made efforts to comply. In March, OKX delisted Tether in Europe without explicitly mentioning MiCA. Additionally, Binance denied reports in September that it planned to delist all stablecoins in Europe, based on a quote from Binance France legal head Marina Parthuisot.
Experts have differing opinions on the impact of MiCA on the European crypto market. However, many have expressed support for the law, with some concerns focused on stablecoins. European Commission economist Joachim Schwerin, on the other hand, believes that “MiCA could help us become more open to stablecoins as a whole.”