Crypto giant Binance, which was on the agenda due to the SEC lawsuit at the beginning of this week, continues to make headlines with MiCA now. The statements of Binance officials were largely denied or misunderstood by CZ for about an hour. So what happened again?
As we know, the European Union took an important step in the crypto field by introducing MiCA regulations. The EU’s crypto law, MiCA, will come into effect next year and will establish a legal framework for blockchain-based stablecoins. At this point, the issuers were an important question.
A Binance executive today announced that they could delist many stablecoins in the region as a result of the Crypto Asset Markets (MiCA) regulation. There are still uncertainties about how the EU’s groundbreaking law will be applied to decentralized and foreign issuers. The problem is that most popular stablecoins are foreign-originated for the EU, and a bulk delisting scenario seems reasonable during the transition period.
However, CZ criticized the focal point in this news. The CEO, who shared a standard “4” post from his X account a few minutes ago, said the following:
“Taken out of context. We have several partners who are issuing EUR and other stablecoins in a compliant manner.”
MiCA was completed in June. With its comprehensive crypto regulation, the EU has become the first major jurisdiction in the world in this regard. Exchanges and custody service companies wishing to operate in the region will be able to provide regulated services by obtaining licenses. The provisions of MiCA regarding stablecoins will come into effect in June of next year.
Marina Parthuisot, Binance France Legal Director, said the following about the new regulation at a meeting organized by the European Securities and Markets Authority (ESMA):
“We can delist all stablecoins in Europe on June 30. We are heading towards those days. This can have a significant impact on the European market compared to the rest of the world.”
Decentralized stablecoins and the DeFi sector are under threat due to MiCA. Thomas Vogel, a partner at the law firm Latham & Watkins, said the following about this:
“Most stablecoin issuers will be completely decentralized or claim to be, so there will be no decision or issuance point. Therefore, they will not be able to meet the conditions of MiCA.”