European Binance users logging into their mobile app on Wednesday were greeted with an unsettling message indicating that certain services were no longer available in their region. This sudden change comes as new cryptocurrency regulations on the Old Continent officially take effect at the end of June.
Binance, acting proactively, has already blocked access to some services, including copy trading, starting from June 26.
Binance Users in Europe Face Significant Restrictions
A year ago, the European Union introduced the Markets in Crypto-assets (MiCA) regulation package, governing the digital assets industry across Europe and within the European Economic Area (EEA).
The MiCA regulations concerning stablecoins will significantly impact the products and services of European cryptocurrency exchanges effective June 30, 2024.
Binance, the largest exchange by monthly transactions, was the first to implement these restrictions, which will affect copy trading enthusiasts immediately starting today (Wednesday).
“Impacted Lead Traders and Copy Traders are encouraged to close their positions in their Copy Trading activities and transfer their funds back to their respective Spot Wallets before 2024-06-27 23:59 (UTC +3),” the exchange commented a few weeks ago.
After that date, any remaining open positions will be automatically closed at market price, and assets will be transferred to spot wallets.
Unauthorized Stablecoins and Product Limitations
From June 30, Binance will also stop supporting various other important services if they rely on "unregulated" stablecoins.
„Stablecoins that are not regulated under MiCA, including USDT and others, will still be available for trading on Binance on Spot, for deposit and withdrawal and in your wallet, as normal. They will also be available to sell on Convert. Binance will not be delisting these stablecoins,” the exchange commented in an email sent to its European users last week.
Under upcoming MiCA rules some stablecoins will face restrictions as unauthorized stablecoins.Binance won't delist any unauthorized stablecoins on spot but will limit their availability for EEA users only on certain products, such as launchpool and earn, and will propose…
— Binance (@binance) June 3, 2024
Key changes for EEA users include:
- Restricted buying of unauthorized stablecoins through Binance Convert
- Limitations on new borrowings and transfers of unauthorized stablecoins in margin trading
- Blocking of new subscriptions involving unauthorized stablecoins in products like Simple Earn, Binance Loans, and Dual Investment
- Restrictions on peer-to-peer (P2P) trading and over-the-counter (OTC) purchases of unauthorized stablecoins
Despite these restrictions, Binance has stated that it will not delist any stablecoins until further notice. Spot trading pairs with unauthorized stablecoins will remain available, and users will still be able to withdraw or deposit these tokens to their Binance wallets.
The exchange is also making changes to its rewards and referral systems. Starting June 24, referral commissions for spot and margin trading will be paid in BNB, Binance's native token, instead of stablecoins.
Binance has advised its European users to review their holdings and consider transitioning to regulated stablecoins or other digital assets ahead of the June 30 deadline.
This article was written by Damian Chmiel at www.financemagnates.com.
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