Binance plans to phase out non-MiCA-compliant stablecoins for users in the European Economic Area (EEA) by the EU’s Markets in Crypto-Assets (MiCA) regulations.
Effective March 31, trading for stablecoins such as Tether (USDT), First Digital USD (FDUSD), and Dai (DAI) will end on the spot market, although users will still be able to hold, deposit, and withdraw these assets. After the deadline, all trading pairs involving non-compliant stablecoins will be removed.
The changes will also affect margin trading. Beginning March 27, Binance will delist non-compliant margin trading pairs and automatically convert any remaining balances to Circle’s USD Coin (USDC), which meets MiCA standards. The platform has urged users to switch their holdings ahead of the deadline to avoid potential liquidation risks.
The platform offers incentives such as zero-fee trading on selected pairs and rewards for trading MiCA-compliant stablecoins like USDC and Eurite (EURI) to encourage a smooth transition. They advise users to update their Binance Earn and Loan holdings to compliant assets.
Binance is adjusting to comply with the MiCA regulatory framework, which aims to clarify guidelines for the European crypto market. Analysts from Kaiko observed that these regulations benefit Circle while impacting competitors like Tether. Tether’s CEO, Paolo Ardoino, criticized MiCA’s requirement for stablecoin issuers to hold at least 60% of their reserves in EU bank accounts, expressing concern that it could pose financial risks due to lack of insurance for deposits over €100,000 under EU regulations.
As the March 31 deadline approaches, They urge EEA users to transition to MiCA-compliant stablecoins or fiat options such as the euro to ensure uninterrupted trading on its platform.
Notably, Binance recently updated its cryptocurrency deposit and withdrawal procedures in Poland to comply with the EU’s Markets in Crypto-Assets Regulation (MiCA). Starting January 20, users may need to provide additional information for these transactions, as announced in a blog post on January 17.
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