Binance, the world’s largest crypto exchange by trading volume, has disabled copy trading services for its European users as the implementation of the Market in Crypto Assets (MiCA) regulation approaches.
This regulatory change, scheduled to become effective at the end of June, signifies a substantial alteration in the European Union (EU) crypto environment.
As of today, European Binance users found a message on their mobile app informing them that the copy trading service is no longer available in their region. Before this, Binance had warned “Impacted Lead Traders and Copy Traders” among its users.
The exchange advised them to close their positions in copy trading activities and transfer their funds back to their respective spot wallets by the deadline of June 27, 2024, at 20:59 UTC. After that date, any remaining open positions will be automatically closed at market price, and assets will be transferred to spot wallets.
Read more: What Is Markets in Crypto-Assets (MiCA)?
BeInCrypto has contacted Binance regarding this matter. However, as of publication, we have yet to receive a response.
This development came after Binance announced new rules on unapproved stablecoins in the EU on June 21. Starting from June 30, users cannot trade, deposit, or withdraw stablecoins that do not follow MiCA guidelines.
“Stablecoins that are not authorized under MiCA, including USDT and others, will continue to be available for trading on Binance on Spot, for deposits and withdrawals, and in your wallet as usual. They will also be available for sale on Convert. Binance will not phase out these stablecoins,” the email announcement reads.
The exchange has also changed its rewards and referral systems. Effective June 24, spot and margin trading referral commissions will be paid in BNB, Binance’s native token, instead of stablecoins. Thus, Binance has advised its European users to review their holdings and consider transitioning to regulated stablecoins or other digital assets before the June 30 deadline.
MiCA Regulation Sets New Standards for Crypto Assets in the EU
Introduced in 2023, MiCA is the first explicit regulation for crypto assets in the EU, offering legal clarity for stakeholders. It categorizes digital assets, specifies applicable laws, and designates accountability for enforcement.
This regulation addresses regulatory issues, ensuring a level playing field for crypto institutions in the EU and eliminating regulatory fragmentation among member states. Moreover, it protects investors, prevents fraud, and ensures compliance with anti-money laundering (AML) and financial laws.
Industry experts view MiCA as a groundbreaking stride in establishing a cohesive set of regulations for crypto assets across the continent. Mohsin Waqar, CEO of Web3 game Senet, thinks that unified regulatory frameworks like MiCA could reduce fragmentation and promote a stable environment.
Ilya Volkov, CEO of the crypto platform YouHodler, also shared a similar sentiment. Despite the challenges surrounding the stablecoin under the new regulation, Volkov believes that Web3 and crypto platforms should migrate from non-compliant stablecoins to those meeting MiCA standards. Nonetheless, he believes that MiCA sets a precedent for international crypto regulation, serving as a model for other regions.
Read more: Stablecoin Regulations Around the World
“Countries in Latin America and Asia will adopt similar approaches in the near future,” he told BeInCrypto.
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