- Binance executive warns of impending stablecoin delisting in Europe.
- EU’s MiCA regulation sparks concerns among crypto industry stakeholders.
- Uncertainty surrounds the application of MiCA to decentralized and foreign issuers.
A recent report claimed a Binance executive has warned about the potential delisting of stablecoins from the European market. The impending threat resulted from the upcoming European Union (EU) rules, known as the Markets in Crypto Assets (MiCA) regulation. These regulations have raised concerns among crypto industry stakeholders.
One of the key concerns highlighted during an online public hearing hosted by the European Banking Authority (EBA) is the uncertainty surrounding how MiCA will apply to decentralized and foreign issuers. The report cited Marina Parthuisot, Head of Legal at Binance France, saying no stablecoin project has been approved under MiCA.
Therefore, the situation potentially leads to significant repercussions for the European crypto market compared to other parts. Furthermore, the report cited Parthuisot saying: “We are heading to a delisting of all stablecoins in Europe on June 30.
” However, the CEO of Binance, Changpeng Zhao, noted on X (formerly Twitter) that Parthuisot’s words had been taken out of context. Zhao added: “We have a couple of partners launching EUR and other stablecoins, in fully compliant manners, of course.”
Meanwhile, prominent lawyer Thomas Vogel argued that the issue of decentralization poses a significant challenge. He noted that many stablecoin issuers claiming to be fully decentralized may struggle to comply with MiCA’s stringent regulations. Vogel stressed that this lack of clarity on decentralization has become a critical question for industry participants, with limited guidance available.
Some legal experts, like Ian O’Mara from Matheson law firm, believe the regulations could permit foreign issuers to register through crypto providers in the EU. On the other hand, Elizabeth Noble, Team Leader for MiCA at the EBA, reiterated that there will be no transitional arrangement for stablecoin tokens. “The rules will apply from the end of June next year,” she said.
Notably, the MiCA regulation aims to establish a framework for crypto assets and providers,
allowing exchanges and wallet services to operate within the EU under a single license. However,
the specific provisions regarding stablecoins are scheduled to take effect in June 2024.
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