Binance to Delist Stablecoins in Europe Over MiCA Compliance Concerns
In Brief
Marina Parthuisot, Head of Legal at Binance, has raised alarms about the impending European Union Markets in Crypto Assets (MiCA) regulation, which could result in the removal of many stablecoins.
With MiCA’s enforcement on the horizon, legal experts are examining its implications for decentralized and foreign issuers.
The upcoming European Union Markets in Crypto Assets (MiCA) regulation, set to be enforced in a few months, might cause many stablecoins to be removed — warned Marina Parthuisot, Head of Legal at Binance.
Legal experts are diligently analyzing the impact of this significant EU law on decentralized and foreign issuers. The MiCA aims to establish comprehensive crypto regulations within the EU, enabling cross-border operations under a single license. However, challenges persist concerning stablecoins and decentralization.
MiCA was finalized last June and is expected to make the EU a leader in comprehensive crypto regulation. But, key provisions related to stablecoins will only come into effect in June 2024.
During an online public hearing hosted by the European Banking Authority (EBA), Marina Parthuisot, Head of Legal at Binance France, expressed concerns about the potential delisting of all stablecoins in Europe by June 30, given the absence of project approvals.
Elizabeth Noble, who leads the MiCA team at the EBA, replied to Parthuisot, stating there are no interim arrangements for stablecoins. She emphasized that the rules will be enforced starting from the end of June next year.
Binance’s CEO Changpeng “CZ” Zhao has applauded the clarity brought by MiCA’s rules, but regulatory pressures have already compelled the exchange to exit numerous European jurisdictions, including the Netherlands, Cyprus and Germany.
MiCA Challenges and Regulatory Preparations
Binance isn’t the only entity facing challenges. Others are grappling with MiCA’s provisions requiring issuers to be EU-based undertakings, which raises questions about governance models favored by many blockchain foundations.
The requirement for issuers to have a presence in the EU raises complex issues, particularly concerning decentralization.
EBA already urged stablecoin issuers to prepare for upcoming European Union rules in July. MiCA regulation introduces governance and reserve requirements for cryptocurrencies tied to the value of other assets. Some provisions of MiCA will take effect six months earlier than others, focusing on licensing for crypto wallet providers and exchanges.
Non-binding guidelines issued by the agency emphasize the importance of adhering to MiCA’s disclosure standards, with a template for voluntary notifications to national regulators. This development coincides with ESMA, the EBA’s counterpart for securities markets, releasing draft MiCA regulations outlining requirements for crypto providers seeking licenses to operate within the EU.
Read more:
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- New York Financial Regulator Sets Higher Standards for Crypto Listings
- Paradigm Stresses Importance of Stablecoins and Sheds Light on Regulations
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].
