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.
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.
“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 June 27th,” 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. From June 30, Binance will also stop supporting various other important services if they rely on “unregulated” 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 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 24th, 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. The 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, and blocking of new subscriptions involving unauthorized stablecoins in products like Simple Earn, Binance Loans, and Dual Investment.
