In a significant development, the renowned cryptocurrency exchange Binance has raised the possibility of delisting all stablecoins from the European market by June 2024, while Bitcoin remains unaffected. This move is motivated by Binance’s commitment to adhere to the Markets in Crypto Assets (MiCA) regulations.
The revelation came to light during an online public hearing hosted by the European Banking Authority (EBA), where Marina Parthuisot, Legal Manager of Binance France, made the announcement. She stated, “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.”
MiCA, in collaboration with the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), is actively working on introducing new provisions for stablecoins, without imposing penalties on those already in the market.
Stablecoins are digital assets whose value is pegged to other assets like fiat currency or gold. Tether (USDT), USD Coin (USDC), Dai (DAI), and Binance USD (BUSD) are some of the leading stablecoins by market capitalization.
It’s worth noting that MiCA aims to establish the European Union as the first major jurisdiction worldwide with comprehensive cryptocurrency regulations, allowing exchanges and wallet providers to operate across the bloc with a single license.
Binance CEO Disputes Reports
Following reports about the potential delisting of stablecoins, Changpeng CZ Zhao, CEO of Binance, expressed doubt and skepticism about the news. He responded by using his trademark “4” to signify accusations of attacks and fake news. Furthermore, CZ Zhao wanted to inform the crypto community that Binance is set to launch EUR and other stablecoins in full compliance with regulations, in partnership with select collaborators.
Binance’s Previous Compliance Measures
The idea of Binance potentially delisting stablecoins to align with MiCA compliance is not entirely implausible. The cryptocurrency exchange has previously made adjustments to adhere to European crypto regulations. This includes withdrawing its application for a crypto custody operator license in Germany in July 2023 and implementing changes in Austria, Belgium, the Netherlands, and Cyprus.
While these changes were driven by a desire to align with MiCA regulations, it’s worth noting that Binance had also decided to discontinue its support for Binance USD (BUSD) from January 2024, though this move was unrelated to MiCA compliance.
Market Reaction to Binance’s News
The cryptocurrency market’s reaction to this development has been relatively subdued. Bitcoin (BTC) experienced a minor 2% decline in the past seven days, while stablecoins like Tether (USDT) and USD Coin (USDC) also saw slight dips in market capitalization. USDT’s market cap touched $83.26 billion before settling at $83.19 billion, and USDC’s market cap dropped from $26.16 billion to the current $25.78 billion over the same period.
