Binance to list one of the first MiCA-regulated stablecoins, EURI

Binance has announced plans to list Eurite, one of the first euro-pegged stablecoins to be fully regulated under the European Union’s Crypto Asset Markets regulation.

Eurite (EURI), issued by Banking Circle SA, will have trading pairs with EUR and USDT (USDT) on Binance as of August 28, 2024, at 10:00 UTC, Binance confirmed in a press release today (August 26).

The move comes alongside a promotion offering zero trading fees on these pairs, aimed at encouraging early adoption of the new stablecoin.

Additionally, the decision to list EURI is in line with Binance’s strategy to support stablecoins that adhere to the stringent standards set by MiCA, enhancing the security of its users in the European Economic Area.

MiCA, which will become law in May 2023, sets uniform rules for crypto asset issuers in the EU. Binance is actively adjusting its offerings to ensure compliance with these new regulations, which include a requirement that stablecoins adhere to certain legal standards in order to be traded within the EU.

As part of this compliance effort, Binance plans to gradually phase out support for stablecoins that do not meet MiCA’s criteria and potentially delist all non-compliant stablecoins in Europe by June 2024.

The introduction of MiCA is a significant development for the crypto industry in Europe, aiming to bring clarity and standardisation to the market. While it provides opportunities for compliant businesses, it also creates challenges for those who need to adapt to the new rules.

Notably, in June, Uphold announced plans to delist its largest stablecoin, USDT, and five other stablecoins for EU customers as part of its efforts to comply with MiCA. Kraken also announced in May that it was reviewing the USDT suspension as a compliance effort.

Circle, meanwhile, has remained compliant, receiving its first MiCA stablecoin license on July 1. But there are concerns in the industry that the strict rules could limit the variety of stablecoins available on the market and potentially stifle innovation.

A study by Kaiko last month found that MiCA greatly benefits USDC (USDC), the largest compliant stablecoin. Amid USDT’s regulatory woes, Tether CEO Paolo Ardonio has expressed concerns about MiCA. Earlier this month, he warned that the regulations pose a risk to stablecoins.