Binance may be about to withdraw all stablecoin offerings from its crypto exchange platform for European investors. The news sparked fears about the potential losses the EU crypto market could suffer if Binance validated and followed through with the motion.
Binance will remove all stablecoin offerings in Europe
A prominent executive at 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, revealed in an online public hearing organized by the EBA that Binance fears it will have to withdraw the majority of its stablecoin offerings for the European market by June 2024.
Parthuisot revealed that the decision was taken to comply with the regulatory restriction that will soon be enacted in Europe by Crypto Asset Markets (MiCA). He stated that European markets could be affected by the loss of stablecoin offerings, which represents a considerable disadvantage for investors when transacting in cryptocurrencies.
“Our goal is to close all stablecoins in Europe on June 30th. This could have a significant impact on the European market compared to the rest of the world,” said Parthuisot.
MiCA, a European regulatory framework and banking authority, implemented a law that would subject stablecoin issuers to strict licensing and compliance regulations.
Elizabeth Noble, MiCA team leader at the European Banking Authority (EBA), stated that the regulatory system has not introduced additional requirements or restrictions on stablecoin offerings in the EU. However, the initial law will be enacted next year.
“There is no transition agreement for these types of tokens [stablecoins]. The rules will apply from the end of June next year,” Noble said.
Regulatory crackdown on cryptocurrency exchange Binance
Binance has been facing several regulatory hurdles since this year. The cryptocurrency 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 US SEC limitations, Binance has also exited several countries due to regulatory issues.
The cryptocurrency 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 cryptocurrency 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 to maintaining a secure and sustainable crypto ecosystem.