Key Points
- Binance’s Head of CEE and CIS, Kyrylo Khomiakov, clarified rumors about potential stablecoins delisting.
- He addressed the subject at Binance Campus, explaining what the new MiCA rules actually mean for stablecoins at Binance.
Binance was surrounded by multiple false reports claiming that the exchange would delist stablecoins due to new MiCA regulations.
Such reports flooded the media in 2023 and this year as well, and the exchange has just addressed the matter, explaining what will happen with stablecoins in light of MiCA new rules.
Binance’s Head of CEE and CIS clarifies the “stablecoins delisting” rumors
The Crypto.ro team is present at Binance Campus, where Kyrylo Khomiakov has just addressed the important matter that has been in the media for a while, regarding a potential ban/delisting of stablecoins.
Binance promoted Kyrylo Khomiakov, its central and Eastern Europe (CEE) General Manager to Head of CEE and CIS. In this role, he works to enhance Binance’s product delivery growth, education initiatives, fiat channel development, and user experience.
Khomiakov brought up the matter regarding a “potential stablecoin ban”, beginning his discourse by saying that this has been plaguing the media for a while now, and it’s time to address the matter.
He said that the media got it completely wrong, with some saying that Binance will delist stablecoins completely and others claiming that this will happen only for European users.
Khomiakov clarified the situation, saying that this is not the case. He continued and said that indeed, MiCA is taking place soon, and starting July 1, there will be new rules for stablecoins.
What MiCA new rules mean for stablecoins at Binance
Binance will maintain operations for stablecoins that get the MiCA license, Khomiakov said. He made it very clear that for Spot trading, stablecoins can stay.
However, there will be no futures or margin products in stablecoins and rewards will not be paid in stablecoins, unless they are fully compliant with MiCA.
For now, he said that stablecoins remain in place for all users, until the end of the year or until further notice. But, eventually, only stablecoins that have MiCA licenses will become available for European users.
He continued and said that most of the stablecoins would require this license, highlighting that this is both good and bad news. The good news is the fact that the move will open the door to new stablecoins.
Binance also addressed the issue via their X account, writing that under the upcoming MiCA rules, some stablecoins will be facing restrictions as unauthorized stablecoins.
The exchange also highlighted that they will not delist any unauthorized stablecoins on Spot, but will limit their availability on products such as Launchpool and Earn, proposing alternatives with regulated stablecoins.
Binance also shared an official blog post in which the exchange explains in detail the upcoming changes for stablecoins.
Stablecoin rules under MiCA
Binance’s official blog post reveals that from June 30, 2024, MiCA requires that certain stablecoins activities be undertaken only by electronic money institutions (EMIs) and credit institutions (banks).
In the EEA, only EMIs and banks will be able to have the following activities:
- issue/mint stablecoins
- communicate offers to encourage the purchase of stablecoins
- ask trading platforms to list their stablecoins
Official measures to be implemented by Binance
Starting June 30, Binance will implement the following measures:
General Product restrictions
Binance will implement product restrictions across the entire product offering. These are set to prevent users from entering into new products or service offerings involving Unauthorized Stablecoins.
Binance Convert
Convert functions for Unauthorized Stablecoins will be maintained in a “sell only” mode. In other words, EEA users will be able to sell Unauthorized Stablecoins for the following:
- other digital assets (such as BTC or ETH)
- regulated stablecoins
- fiat currencies (depending on the availability of fiat channels in your jurisdiction)
Buying Unauthorized Stablecoins will not be possible from June 30.
Spot Trading
Spot trading pairs with Unauthorized Stablecoins will remain available until further notice, just like Khomiakov mentioned. During the interim period, crypto trading pairs with Unauthorized Stablecoins will coexist with trading pairs with Regulated Stablecoins.
Wallet
Custody and wallet services of Unauthorized Stablecoins will continue, and users will be able to withdraw or deposit stablecoins from or to their Binance Wallet.
In conclusion, Binance is taking this approach to comply with MiCA requirements while at the same time, avoiding market disruption. According to the exchange, the transitional approach was designed to minimize any potential harmful impacts to the EEA and the global crypto market.
