Binance Executive has warned that multiple stablecoins could be removed from the platform of the cryptocurrency exchange. This is due to the exchange’s attempts to decipher the implications of the European Union’s Markets in Crypto Assets (MiCA) regulation.
The MiCA regulation on stablecoins is set to come into effect in June 2024. This was confirmed by Marina Parthuisot, Head of Binance France, during an online hearing hosted by the European Banking Authority (EBA). Parthuisot said “We are heading to a delisting of all stablecoins in Europe on June 30, given that no project has yet been approved. This could have a significant impact on the market in Europe compared to the rest of the world.”
The cryptocurrency exchange continues to face regulatory pressure from the US and other parts of the world. Despite this, Changpeng “CZ” Zhao, CEO of Binance, has welcomed the MiCA’s clear rules. However, the exchange has been forced to cease operations in some countries in Europe, such as the Netherlands, Cyprus, and Germany, due to regulatory challenges.
Binance.US is currently locked in a legal case with the United States Securities and Exchange Commission (SEC). This week, an American court denied the SEC’s request. As a result, the platform’s daily trading volume has been significantly reduced in recent months.
This latest news about Binance shows that the crypto exchange is facing many regulatory challenges. It is uncertain how MiCA will be applied to decentralized and foreign stablecoins, but the regulation will come into effect in June 2024. This could have a major impact on the European market compared to the rest of the world.
