Binance has announced plans to list Eurite, one of the first European stablecoins fully regulated by the European Union’s crypto asset markets regulation.
In a press release published today, August 26, Binance confirmed that Eurite (EURI), issued by Banking Circle SA, will have trading pairs with EUR and USDT (USDT) on Binance starting August 28, 2024, at 10:00 UTC.
This initiative is accompanied by 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 comply with the strict standards set by MiCA, thereby enhancing the security of its users in the European Economic Area.
The MiCA law, passed 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 requiring stablecoins to adhere to specific legal standards before they can be traded within the EU.
As part of this compliance effort, Binance plans to phase out support for stablecoins that do not meet MiCA criteria, potentially delisting all non-compliant stablecoins in Europe by June 2024.
The introduction of MiCA is a major step forward for the crypto industry in Europe, aiming to bring clarity and standardisation to the market. While it presents opportunities for compliant businesses, it also poses challenges for those that must adapt to the new rules.
In June, Uphold notably revealed its intention to delist USDT, the largest stablecoin, and five other stablecoins for its EU customers as part of efforts to comply with MiCA. Additionally, Kraken revealed in May that it was reviewing the suspension of USDT as part of a compliance effort.
In the meantime, Circle has maintained its compliance, obtaining the first MiCA stablecoin license on July 1. However, the industry is concerned that the strict rules could limit the diversity of stablecoins available on the market, potentially stifling innovation.
A study conducted by Kaiko last month found that MiCA has greatly benefited USDC, the largest compliant stablecoin. Amid USDT’s regulatory woes, Tether CEO Paolo Ardonio has expressed concerns about MiCA. He warned earlier this month that regulation poses a risk to stablecoins.
