Binance, the world's largest cryptocurrency exchange by transaction volume, announced that it would soon limit the availability of stablecoins, which are considered “unregulated” by the European Union (EU).
Binance CEO Richard Teng addressed speculation that Binance may delist some stablecoins. Teng said in his statement:
“I would like to take a moment to answer one of the biggest questions being asked about our strategy for the upcoming MiCA stablecoin rules.
Rest assured that Binance will not directly delist unauthorized stablecoins but will only limit their availability to certain products for European Economic Area (EEA) users. Updates regarding regulated stablecoins will be shared soon.”
Binance has not yet received an official answer to the question of which stablecoins fall into the “unregulated” category.
As stablecoins become regulated in Europe, Binance said only tokens issued by “regulated companies” will be available to the public. “Some existing stablecoins may not fall into this category and will therefore be subject to certain restrictions,” the company added.
The company stated that the rules for stablecoins, as outlined in the EU's CryptoAsset Markets Directive (MiCA), will come into force at the end of June. “This will be the first step into the new regulatory framework and will have a significant impact on the stablecoin market in the European Economic Area,” the statement said.
*This is not investment advice.