An executive at the 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, the head of legal at Binance France, said that since no project has yet to receive approval, “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 happened earlier this year in June. Within legislation provisions for stablecoins are 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.
Related: 9 key steps for ensuring compliance with incoming MiCA regulations
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 EU standards and also after hearing feedback from its community and multiple projects.
Regarding the stablecoin matter, in July lawyers following the situations surrounding the new EU legislation commented that the stablecoin transaction cap could “stifle” crypto adoption. Under MiCA there will be a $216 million cap imposed on stablecoins including USDT and USDC.
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 the same day, however, writing “4,” his adaptation of the more familiar FUD (fear, uncertainty, 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.”
4.
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.
— CZ Binance (@cz_binance) September 21, 2023
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
Update 8:12 PST 9/21 – Updated article to add reaction and tweet from Binance CEO Changpeng Zhao.
Derek Andersen contributed to this report.