Binance Official Claims the Exchange Will Delist Stablecoins in Europe
- Binance previously announced plans to delist privacy stablecoins in Europe but reversed the decision following feedback from its community.
- In an effort to align with MiCA, France revised its own crypto licensing system in August.
- The future of stablecoins has been under debate due to MiCA, Stablecoins like Tether, USDT, and USDC will have a $216 million cap imposed on them under MiCA.
A Binance executive warned on Thursday that the European Union’s Markets in Crypto Assets (MiCA) regulation could lead to significant changes, including delisting stablecoins. Crypto companies have yet to fully comprehend the full implications of the new rules expected to take effect in a few months. Furthermore, there are still some questions about how the EU’s historic law will be applicable to decentralized and foreign issuers.
During a public hearing with the European Banking Authority (EBA), Marina Parthuisot, head of legal at Binance France, explained that since no project has been approved, Binance would delist all stablecoins in Europe by June 30, which “could have a significant impact on the market in Europe compared to the rest of the world.”
The MiCA’s provisions on stablecoins will go into effect in June 2024, but the EBA and the European Securities and Markets Authority (ESMA) are currently working on the specifics.
Responding to Parthuisot’s comments, Elizabeth Noble, one of the key players in MiCA at the EBA, said: “There is no transitional arrangement for these types of [stablecoin] tokens. The rules will apply from the end of June next year.”
Reacting to Parthuisot’s comments, Binance CEO Changpeng Zhao said on X that Parthuisot’s statements had been misinterpreted. Binance later published a blog post where it noted that it was “confident that there will be a constructive solution in place” before June to prevent an unfavorable effect.
This would not be the first time Binance has announced plans to delist stablecoins. The crypto exchange changed its decision to delist privacy coins in Europe following consultations with its community and adjustments to its operations to comply with EU policies.
Zhao previously expressed his praise for the much-needed clarity provided by MiCA. However, Binance has had to stop its operations in several European countries, such as Cyprus and Germany, due to regulatory pressure.
Interestingly, the crypto exchange is not the only service provider facing tough times in Europe. Others need clarification on clauses demanding that issuers be EU-based entities.
The EU will become the first region in the world to have a robust set of policies with the launch of MiCA, formally passed in June. MiCA prescribes a single procedure for both crypto exchanges and wallet service providers.