Binance may be on the verge of delisting all stablecoin offerings on its crypto exchange platform for European investors. The news has triggered fears of the potential losses the EU crypto market may sustain if Binance validates and proceeds with the motion.
Binance To Delist All Stablecoin Offerings In Europe
A prominent executive of Binance, one of the world’s largest crypto exchanges, has revealed a new development that has shaken the crypto community. Marina Parthuisot, head of legal at Binance France has disclosed in an online public hearing hosted by the EBA that Binance fears it may have to delist the majority of its stablecoin offerings for the European market by June 2024.
Parthuisot revealed that the decision was made to comply with the soon-to-be enacted regulatory constraint in Europe by the Markets in Crypto Assets (MiCA). She stated that the European markets may suffer due to the loss of stablecoin offerings, giving investors a considerable handicap when conducting their cryptocurrency transactions.
“We are heading to a delisting of all stablecoins in Europe on June 30. This could have a significant impact on the market in Europe compared to the rest of the world,” Parthuisot stated.
MiCA, a European regulatory framework and banking authority has set in motion a law that would subject stablecoin issuers to stringent licensing and compliance regulations.
The team leader for MiCA at the European Banking Authority (EBA), Elizabeth Noble has stated that the regulatory system has not incorporated additional requirements and constraints on stablecoin offerings in the EU. However, the initial law will be enacted next year.
“There is no transitional arrangement for these types of [stablecoin] tokens. The rules will apply from the end of June next year,” Noble said.
Regulatory Crackdown On Binance Crypto Exchange
Binance has been struggling with several regulatory hurdles since this year. The crypto exchange was sued by the United States Securities and Exchange Commission (SEC) which filed more than a dozen charges for allegedly misleading investors and operating an unregistered exchange.
In addition to the constraints from the US SEC, Binance has also exited several countries due to regulatory concerns.
The crypto exchange has delisted a significant number of cryptocurrencies from its exchange platform over the years, including major cryptocurrency trading pairs as well as altcoins like Tron, Helium, and others.
As the crypto industry continues to evolve, regulatory compliance plays a vital role in shaping the cryptocurrency industry and Binance’s proactive response to MiCA regulations is a demonstration of its commitment towards maintaining a safe and sustainable crypto ecosystem.