Marina Parthuisot, Binance's French legal director, said the cryptocurrency exchange will delist stablecoins for the European market by next June if necessary to comply with standards laid out by the Markets in Crypto-Assets (MiCA) law, CoinTelegraph reports.
“We are heading to a delisting of all stablecoins in Europe on June 30,” given that no project has yet been approved, Parthuisot said, Coindesk reports. “This could have a significant impact on the market in Europe compared to the rest of the world.”
MiCA, signed into law by the European Union in May, marked a “landmark” step for crypto regulations in Europe, CoinTelegraph reports. The legislation sets a definition for digital assets, specifies what qualifies as a “cryptocurrency” and what qualifies as a “token,” and names standards for crypto asset issuers as well as crypto asset service providers.
The legislation's criteria for stablecoins—crypto assets whose value is tied to other assets like fiat currency or gold—will take effect in June 2024.
David Schwed, the chief operating officer of blockchain cybersecurity firm Halborn, said MiCA is a key regulatory step for the digital asset industry.
“This regulation is a significant step forward for the crypto community," Schwed said. "It presents a uniform framework for all EU member states, setting a precedent that I believe, and hope, the rest of the world will take note of and consider adopting.”
When the European Union voted in favor of implementing MiCA in April, Changpeng Zhao (CZ), the CEO and founder of Binance, said in a post on X, formerly Twitter, that he believes the new regulations will help “protect users and support innovation.” Zhao said Binance would make any needed adjustments to comply with MiCA regulations as they take effect.
CoinTelegraph reports that France has introduced amendments to its crypto regulations that will take effect on Jan. 1, 2024 to align with MiCA. France’s financial authority, the Autorité des Marchés Financiers (AMF), announced in August that it would be “enhancing” registration requirements for crypto platforms.
The AMF recently approved France’s third-largest bank by market cap and the sixth-largest bank in Europe, Societe Generale, to operate as a Digital Asset Service Provider (DASP), The Block reports. The bank can now serve as a custodian for French venture capital firms.