Potential Large-Scale Delisting of Stablecoins: Binance Representative Warns Ahead of EU MiCA Implementation
Ahead of EU Regulations, Binance Warns of Potential Delisting of Stablecoins
A senior representative from Binance has raised concerns about the possible delisting of stablecoins from the exchange as the European Union’s Markets for Crypto Assets (MiCA) legislation approaches implementation. This legislation has significant implications for decentralized and international cryptocurrency issuers.
MiCA’s Position on Stablecoins
Expected to be fully operational by June 2024, MiCA specifically addresses stablecoins, which are cryptocurrencies tied to other assets like fiat currencies or commodities. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) are working together to refine the legislation’s details.
During a digital public forum hosted by the EBA, Marina Barthuisot, Chief Legal Officer at Binance France, expressed concerns about a potential “demonetization of stablecoins” by the end of June. No stablecoin projects have received approval under the upcoming regulations, which could lead to a significant market shift in Europe.
Binance CEO Changpeng Zhao clarified the situation following the concerns raised. He stated that the company is working with various partners to launch stablecoins, including the euro, in a manner that complies with legal requirements. Binance remains confident in finding a viable solution before the June deadline to mitigate any negative effects on the market.
While acknowledging MiCA’s role in clarifying cryptocurrency regulations, Binance has already pulled out of several European countries due to increasing regulatory pressure, including the Netherlands, Cyprus, and Germany.
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