An executive at cryptocurrency exchange Binance said in a public hearing with the European Banking Authority (EBA) that it plans to delist stablecoins for the European market by June 2024.
Marina Parthuisot, head of legal at Binance France, said that since no projects have yet been approved, “we are heading to a delisting of all stablecoins in Europe on June 30.”
“This could have a significant impact on the market in Europe compared to the rest of the world.”
These comments follow the passing of Europe’s landmark crypto regulation, the Markets in Crypto-Assets (MiCA) law, which occurred earlier this year in June. The legislation’s provisions for stablecoins are set to come into effect a year later, in June 2024.
Elizabeth Noble, a team leader for MiCA at the EBA, responded to Parthuisot, saying: “There is no transitional arrangement for these types of [stablecoin] tokens. The rules will apply from the end of June next year.”
Cointelegraph has reached out to Binance for further comment on its anticipated action.
Binance has, however, changed its mind once before regarding the delisting of assets. On June 26, it reversed its decision to delist privacy coins in Europe due to a revision of its operations to comply with European Union standards and also after hearing feedback from its community and multiple projects.
Regarding the stablecoin matter, lawyers following the situations surrounding the new EU legislation commented in July that the stablecoin transaction cap could “stifle” crypto adoption. Under MiCA, there will be a $216 million cap imposed on stablecoins, including Tether.
Binance’s decision to delist stablecoins to comply with MiCA is not the only instance of changes in the name of compliance. Companies and nations have been shifting in order to meet the new standards.
In August, France updated its own crypto licensing regime in an effort to synchronize with MiCA.
Binance CEO Changpeng Zhao took to X (formerly Twitter) later on Sept. 21, writing, “4” — his adaptation of the more familiar FUD (fear, uncertainty and doubt). “It was a question taken out of context. In fact, we have a couple of partners launching EUR and other stable coins, in fully compliant manners of course,” he continued. Zhao had previously written positively about the introduction of MiCA, writing, “We’re already preparing and will be ready. Exciting opportunities ahead for compliant businesses in Europe.”
Source : Cointelegraph By Savannah Fortis / September 21, 2023