Binance will remove European stablecoin listings due to lack of MiCA compliance
According to a Binance official, the cryptocurrency exchange wants to comply with MiCA rules by delisting stablecoins from the European market by June 2024.
In a public meeting with the European Banking Authority (EBA), a representative from the cryptocurrency exchange Binance said that the company intends to delist stablecoins for the European market by June 2024.
Since no projects have been authorized as of yet, Binance France’s director of legal Marina Parthuisot said, “We are heading to a delisting of all stablecoins in Europe on June 30.” “Possibly more so than in other regions, this could have a major effect on the European market.”
The Markets in Crypto-Assets (MiCA) legislation, which is Europe’s landmark crypto regulation, was passed in June of this year, prompting these remarks. June 2024 marks the implementation date for the law’s stablecoin requirements.
For the EBA’s MiCA team, head Elizabeth Noble told Parthuisot, “There is no transitory mechanism for these sorts [of stablecoin tokens]. Beginning at the end of June of 2022, the regulations will be in effect.”
Binance has already reversed its decision to delist some assets. On June 26 it decided to reconsider its earlier decision to delist privacy coins in Europe after making changes to its business model to meet EU requirements and after receiving input from the community and other organizations.
The stablecoin transaction limit might “stifle” crypto adoption, according to attorneys who have been monitoring the events around the new EU regulation. Stablecoins like Tether, which fall within the purview of MiCA, will be subject to a $216 million maximum supply limit.
The removal of stablecoins from Binance’s exchange was not the only modification made for regulatory reasons. Both businesses and governments have been making adjustments to better fit the new norms.