Binance recently made significant statements about the European Union’s Markets in Crypto-Assets (MiCA) regulation. In particular, the regulations introduced for stablecoins could have a profound impact on the cryptocurrency market in Europe.
What is MiCA’s Stablecoin Regulation?
Set to come into effect next year, MiCA, although unclear about how decentralized platforms will be regulated, has clarified its stance on stablecoins. According to the legislation, reserve requirements will be implemented for stablecoins. Consequently, stablecoin issuers will need to obtain an Electronic Money Institution (EMI) license within the European Union. The time and conditions required to obtain this license pose challenges for many stablecoin operators.
Binance Reacts the News
Binance highlighted the significance of this issue in its statement and commented on the licensing, saying: “Currently, of them do,”. According to Binance, a solution must be found before the middle of 2024.
“While we are confident that there will be a constructive solution in place before the mid-2024 deadline, if left as is, this could have an impact on the European crypto market and the competitiveness of European crypto exchanges in a global market.”Binance.
According to a report by Coindesk, Binance’s Legal Head in France, Marina Parthuisot, has claimed that due to the MiCA legislation not granting approval for stablecoins, Binance will delist all stablecoins in Europe by June 30, 2024.
Binance CEO CZ responded to this news, first with the “4” sign he used against FUD: “It was a question taken out of context. In fact, we have a couple partners launching EUR and other stablecoins, in a fully compliant manner of course.”
In CZ’s statement, it was seen that there was no clear information given that the exchange would stop listing stablecoins completely.