Binance has announced plans to list Eurite, one of the first European-pegged stablecoins fully regulated under the European Union Markets in Crypto-Assets Regulation.

In a press release 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 move is accompanied by a promotion of no trading fees for these pairs to encourage early adoption of the new stablecoin.

Furthermore, the decision to list EURI is in line with Binance’s strategy to support stablecoins that meet MiCA’s strict standards, thereby increasing the security of its users in the European Economic Area.

MiCA came into force in May 2023 and establishes uniform rules for crypto asset issuers in the EU. Binance is actively adapting its offering to ensure compliance with these new regulations, including the requirement that stablecoins must meet certain regulatory standards before they can be traded within the EU.

As part of these compliance efforts, Binance plans to gradually phase out support for stablecoins that do not meet MiCA 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 and is expected to bring clarity and standardization to the market. While it offers opportunities for compliant companies, it also presents challenges for those who need to adapt to the new rules.

In June, Uphold notably announced that it plans to delist its largest stablecoin, USDT, as well as five other stablecoins, from its EU clients as part of its efforts to comply with MiCA. In addition, Kraken announced in May that it is exploring suspending USDT as part of its compliance measures.

In the meantime, Circle has complied with regulations and secured the first MiCA stablecoin license on July 1. However, there are concerns in the industry that the strict rules could limit the variety of stablecoins available on the market, potentially stifling innovation.

A Kaiko study last month found that MiCA brought significant benefits to the largest compliant stablecoin, USDC (USDC). Given USDT’s regulatory woes, Tether CEO Paolo Ardonio has raised concerns about MiCA, warning earlier this month that regulation poses a risk to stablecoins.