EU's crypto law MiCA set to take effect, Binance warns stablecoins could face large-scale delisting

According to a report from CoinDesk, with the EU's landmark Markets in Crypto-Assets (MiCA) regulation set to take effect next year, the specific impact on stablecoins and their issuers has drawn attention and discussion both inside and outside the industry. Exchange Binance has already expressed concerns about these new rules.

The Imminent Arrival and Implications of the MiCA Bill

The EU's MiCA cryptocurrency bill is set to come into effect next year, establishing a framework for stablecoins. However, due to legal uncertainties and lack of approvals, the market may face a period of volatility by June next year.

Binance's Concerns Regarding the New Regulations

Marina Parthuisot, legal counsel at Binance, stated that considering no stablecoin company has yet been approved, all stablecoins in Europe may be delisted by June 30, 2024. Additionally, Binance CEO Changpeng Zhao, while praising the clarity MiCA brings, regulatory pressures have forced the company to exit many European markets.

Following the report, Binance further commented, expressing belief in finding a solution:

"We engage in constructive dialogues with regulators worldwide to assist in the development of the Web3 industry. These discussions are typically not public, partly because things can be taken out of context, especially when new regulations are being formulated.

In today's discussion, we raised a question about whether there will be a grace period for stablecoin operators applying for an EMI license to comply with MiCA requirements. As it stands, MiCA will require all EU exchanges to delist stablecoins issued by issuers without EMI licenses in the EU. Currently, no one meets the requirements. While we believe there will be a constructive solution before the mid-2024 deadline, if left unchanged, this could impact Europe's crypto market and the competitiveness of European crypto exchanges globally."

Industry Uncertainties and Concerns About the Regulations

Not just Binance, many are puzzled by certain aspects of the MiCA regulations that require issuers to be based in the EU. Many legal experts and participants are trying to interpret these new regulations, but there doesn't seem to be a clear answer yet. However, officials appear to maintain caution regarding the tolerance of the regulations, emphasizing that the rules will start to take effect by the end of June next year.