The EU Code of Regulation of Encrypted Asset Markets, MiCA, ended its transition period on 1 July, and European encryption users are reassessing whether assets should remain on the centralized exchange or shift to chain-based hosting. BNB Chain issues operational guidelines at this point of time on how to transfer assets from the exchange to BNB Chain, with a focus on the security of wallets, testing of transfers and maintenance of assistive notes.
MiCA changed the way it visited.
MiCA has now required the encryption company that continues to provide services in the EU to hold CASP plates. After the new regulations have been put in place, the user begins to confirm whether the platform is still capable of providing transaction, filling or revenue-type services in the EU.
In the Guide, BNB Chain describes self-custody as an alternative to exchange hosting. The core difference is that the private key is in the hands of the user and not in the custody of the platform.
The guide emphasizes that the wallet is safe.
The guide cautions that a shift to self-custody does not mean that the risk disappears and that more responsibility falls on the user himself. BNB Chain suggests that the user first perform a small test transfer, properly preserve the recovery phrase and leave a small amount of BNB in the wallet as a chain charge.
It also alerts users to the use of false wallets, the falsification of cross-chain websites and suspicious links disseminated through private letters or advertisements. Upon completion of the asset transfer, the user can go to centralize the application directly through the wallet connection.
BNB Chain lists its eco-accessible functions and applications, including token exchange, currency stabilization, pledge, borrowing, monetization of real assets and durability transactions, such as PancakeSwap, Venus, Lista DAO, Aster, DappBay and Bsctrace.
Exchange services adjustment
This action coincides with a number of European platforms adapting their services to MiCA. It was mentioned that Binance had suspended some of its services for EU users, including new spot orders, new fillings, new registrations and some of the revenue products, because of the failure to obtain a MiCA licence by the cut-off date.
At the same time, licensed platforms are seeking inflow of users. Both Coinbase and OKX had previously introduced transfer preferences to Binance users before the rules became fully effective. Regulatory requirements, asset hosting modalities and platform availability are becoming the main consideration in the selection of service providers for European users.
The stabilization currency was also directly affected. Due to the fact that Tether did not apply for permission from the MiCA, USDT has been unable to continue to access the EU’s regulated exchange’s order book, and USDC and EURC, among others, have gained a more favourable position on the licensed platform.
The number of licensees continues to grow.
The European market has not closed down encryption, but the continued existence of the platform is increasingly dependent on the authorization. The European Securities and Markets Authority's list of MiCA has increased to 300 authorized institutions, with 57 new service providers nearing the deadline.
The updated list includes banks, trading companies and encrypted enterprises, which can provide services within the European Union through the MiCA common mechanism. Ripple has also been authorized in Luxembourg to enter the licensed market.
This release of BNB Chain is not a traded product but a set of migration paths for ordinary users. It seeks to transform “self-custody” into a choice that European users need to make at their own initiative, in the context of tighter regulation and re-engineering of platform services.