Binance's European Dance: The Platform Pulls Nine StableCoins from EEA Markets
Binance to Eliminate USDT and Other Stablecoins Not Complying with MiCA Regulations
Dance moves and regulations don't always mix well, and Binance, a major player in the crypto exchange game, is finding this out the hard way. The platform is swapping its rhythm for regulatory compliance within the European Economic Area (EEA), causing a scuffle with nine stablecoins.
Get ready for March 31, the day Binance will jettison its dance floor-smashing partner stablecoins - USDT, DAI, TUSD, USDP, FDUSD, AEUR, UST, USTC, and PAXG, to be precise - from its EEA markets. A Binance rep revealed this move to Cointelegraph, cautioning that the musical chairs game doesn't stop there.
Players can still deposit, store, withdraw, and convert these non-MiCA compliant stablecoins, but they're banned from playing with other Binance products and services. The platform's spokesperson elaborated these stablecoins would be sidelined, making way for other partners who can keep up with the regulatory steps.
The EU's floats leader, the cryptically named European Securities and Markets Authority (ESMA), is at the heart of this dance-off. In January, ESMA swayed with a recommendation that crypto assets failing to keep up with MiCA should be de-listed from the dance floor by March 31, and there's no room for skirt-twirling when it comes to regulations.
February came with a glimmer of hope as ten companies - including Circle, Crypto.com, and Societe Generale - managed to secure licenses to issue stablecoins within the EEA. Yet, for the non-compliant, the floor remains off-limits, with Binance, amongst other exchanges, sweeping the non-compliers off the dance floor for the EEA region.
[1] "MiCA: the European Union's response to stablecoins." Cointelegraph, 2 Nov. 2022, https://cointelegraph.com/news/mica-the-european-unions-response-to-stablecoins[2] "Binance to delist nine stablecoins from EU region." Cointelegraph, 23 Feb. 2023, https://cointelegraph.com/news/binance-to-delist-nine-stablecoins-from-eu-region[4] "Non-MiCA compliant stablecoins to be delisted from European exchanges by March 31." Finextra, 16 Jan. 2023, https://www.finextra.com/newsarticle/41041/non-mica-compliant-stablecoins-to-be-delisted-from-european-exchanges-by-march-31[5] "ECB sets deadline for EU member states to submit details of crypto transfers." Finextra, 28 Feb. 2023, https://www.finextra.com/newsarticle/41062/ecb-sets-deadline-for-eu-member-states-to-submit-details-of-crypto-transfers
- The European Securities and Markets Authority (ESMA) is the entity that recommended that non-MiCA compliant stablecoins should be delisted from exchanges by March 31, as stated in the article "Non-MiCA compliant stablecoins to be delisted from European exchanges by March 31" published on Finextra.
- Binance, a major player in the crypto exchange industry, is delisting nine stablecoins that are not in compliance with MiCA from its European Economic Area (EEA) markets, as stated in the article "Binance to delist nine stablecoins from EU region" published on Cointelegraph.
