Cryptocurrency exchange Binance is planning to remove stablecoins from European markets by June 2024, according to statements made by Marina Parthuisot, head of legal affairs at Binance France, during a public hearing at the European Banking Authority (EBA).
Parthuisot explained that since no projects have yet been approved under the new regulatory framework, the exchange intends to delist all stablecoins in Europe on June 30, 2024. This decision could have a significant impact on the European cryptocurrency market compared to other regions around the world .
This announcement follows the passage of Europe's landmark cryptocurrency regulation, the Markets in Crypto-Assets (MiCA) Act, in June of the same year. The provisions of MiCA related to stablecoins are set to become effective one year later, in June 2024. In In response to Parthuisot's statement, Elizabeth Noble, head of the EBA's MiCA team, clarified that there will be no transitional arrangements for stablecoins, and the rules will be fully implemented by the end of June next year.
Binance has previously reversed decisions regarding asset delisting. In June, it backtracked on plans to delist a privacy coin in Europe after adjusting its operations to comply with EU standards and taking community feedback and project input into account. Regarding the stablecoin issue, legal experts have raised concerns about caps on stablecoin transactions, suggesting they could potentially hinder cryptocurrency adoption. Under MiCA, stablecoins like Tether and USDC will be subject to a cap of $216 million.
Binance's decision to delist stablecoins as part of its compliance efforts with MiCA is just one example of how companies and countries are adapting to meet evolving regulatory standards. In August, France updated its cryptocurrency licensing framework to align with MiCA. Binance CEO Changpeng Zhao has also expressed readiness for MiCA's rollout, stating that they are preparing for it and see exciting opportunities for European compliance-focused businesses.
