To comply with the new European MiCA legislation, which will come into force in the summer of 2024, crypto exchange Binance plans to delist stablecoins on the European market.
Marina Parthuisot, Head of Legal at Binance France, said at a public hearing organized by the European Banking Authority (EBA) that the exchange plans to delist stablecoins on the local market by June 2024. This is reported by CoinDesk.
According to Parthuisot, the Markets in Crypto-Assets (MiCA) bill imposes such high requirements on issuers of stablecoins that meeting them is simply impossible. This, in turn, severely restricts the crypto exchange’s activities in Europe. Therefore, the company at the moment sees no other option but to withdraw regional support for all assets linked to the value of other assets or currencies.
The MiCA bill was approved by the European Parliament in April this year, and the European Council adopted the updated DAC8 tax directive in May.
However, Binance CEO Changpeng Zhao said that Parthuisot’s statement shouldn’t be seen as the truth in the primary sense as no final decision has been made yet. He also added that Binance is looking for a constructive solution and cooperating with the issuers of some euro-backed stablecoins.
It’s worth noting that Zhao welcomed the European regulations, arguing that the MiCA could solve many of the local crypto market’s problems. However, regulatory pressure has forced the exchange to leave many European jurisdictions, including Belgium, the Netherlands, Cyprus, Austria, and Germany.
Binance is experiencing difficulties not only in the European market. The U.S. Securities and Exchange Commission (SEC) makes the most complaints to the crypto exchange.
