Binance has announced plans to list Eurite, one of the first Euro-pegged stablecoins fully regulated under the European Union’s Markets in Crypto-Assets regulation.
In a press release today, Aug. 26, Binance confirmed that Eurite (EURI), issued by Banking Circle S.A., will have trading pairs with EUR and USDT (USDT) on Binance starting from Aug. 28, 2024, at 10:00 UTC.
This move is accompanied by a promotion offering zero trading fees on these pairs, aimed at encouraging early adoption of the new stablecoin.
Moreover, the decision to list EURI is in alignment with Binance’s strategy to support stablecoins that comply with the stringent standards set by MiCA, enhancing the security of its users in the European Economic Area.
MiCA, passed into law in May 2023, establishes 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 for stablecoins to adhere to specific legal standards before they can 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, potentially delisting 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 standardization to the market. While it presents opportunities for compliant businesses, it also poses challenges for those needing to adjust to the new rules.
Notably, in June, Uphold revealed plans to delist USDT, the largest stablecoin, and five more stablecoins for its EU customers as part of efforts to comply with MiCA. In addition, Kraken disclosed in May it was reviewing the suspension of USDT as a compliance effort.
Meanwhile, Circle has maintained compliance, securing the first MiCA stablecoin license on July 1. However, there is concern within the industry that the strict rules could limit the diversity of stablecoins available in the market, potentially stifling innovation.
A Kaiko research last month found that MiCA majorly benefited USDC (USDC), the largest compliant stablecoin. Amid USDT’s regulatory issues, Tether CEO Paolo Ardonio expressed concerns about MiCA. He warned earlier this month that the regulations pose a risk to stablecoins.
