Binance Plans to Delist Stablecoins from European Market by 2024, CEO Clarifies
Summary:
Top legal executive at Binance, Marina Parthuisot, informed the European Banking Authority (EBA) about plans to delist all stablecoins from the European market by June 2024, following the passing of Europe's crypto regulation, the MiCA law. The rules will come into effect without a transitional arrangement. Binance CEO Changpeng Zhao later clarified on X, stating that partners will be launching EUR and other fully compliant stablecoins.
A top official at the Binance cryptocurrency exchange informed the European Banking Authority (EBA) in a public hearing that the exchange is considering removing stablecoins from its European market offerings by June 2024. Marina Parthuisot, who is in charge of legal matters at Binance in France, clarified that as no project has been approved to date, all stablecoins could be taken off the market in Europe by June 30. She also noted a potential significant impact this action could have on the European market.
These statements come after the introduction of the landmark European crypto legislation, the Markets in Crypto Assets (MiCA), which was passed in June this year. Provisions under the legislation for stablecoins are due to be enforced in June 2024. Elizabeth Noble, a Leader of the MiCA team at the EBA, responded to Parthuisot's comments by stating that the rules for these types of tokens will be in effect by the end of next June without any transitional arrangement.
When contacted for additional commentary on their planned move, Binance did not immediately respond. It is important to note that Binance has reversed its decision to remove certain assets in the past. On June 26, it cancelled the delisting of privacy coins in Europe following a restructuring of its operations in order to comply with EU standards, as well as after receiving feedback from both its community and various projects.
In relation to the stablecoin issue, legal experts monitoring the new EU legislation in July remarked that a cap on stablecoin transactions could potentially hinder crypto adoption. The MiCA includes a limit of $216 million on stablecoins such as USDT and USDC.
Binance's decision to remove stablecoins to abide by MiCA is among a series of changes made by various entities to comply with the new standards. In a similar move, France updated its crypto licensing arrangements in August in a bid to align with MiCA. Notwithstanding these developments, Binance CEO Changpeng Zhao downplayed the issue on X (formerly Twitter), writing “4,” a reference to the widespread FUD (fear, uncertainty, and doubt). He clarified that the question was misinterpreted and in fact, fully compliant stable coins, including EUR, are set to be launched by their partners soon.
Earlier, Zhao had expressed optimism about the introduction of MiCA, commenting on the exciting opportunities it could bring to compliant businesses in Europe.
Published At
9/21/2023 1:52:28 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.