Binance has raised concerns about how the Market in Crypto Asset (MiCA) regulation will apply to decentralized and foreign issuers. One of the exchange's concerns is its provisions regarding stablecoins. These digital assets, whose values are tethered to traditional assets like fiat currency or precious metals, are facing a critical moment as MiCA's provisions on stablecoins are scheduled to take effect in June 2024.
Binance Raises Concerns about MiCA
Marina Parthuisot, the Head of Legal at Binance France, expressed her apprehension during an online public hearing hosted by the European Banking Authority (EBA), stating that without any project approvals yet, Europe could be heading towards a delisting of all stablecoins by June 30. This, she believes, could significantly impact the European crypto market compared to the rest of the world.
Marina Parthuisot, Binance’s French legal director, said that since the MiCA bill that will take effect in June 2024 has not yet approved any stablecoins, Binance plans to delist all stablecoins in Europe on June 30, 2024. CoinDesk https://t.co/PDEKnZegE9
— Wu Blockchain (@WuBlockchain) September 21, 2023
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) are currently in the process of fine-tuning the details of MiCA. This process includes addressing critical questions about how the regulation will apply to decentralized and foreign issuers.
At their core, stablecoins are a category ofcryptocurrencies designed to mitigate price volatility in digital currencies. Unlike Bitcoin or Ethereum, which can experience high price fluctuations, stablecoins are designed to maintain a stable value. They achieve this stability by pegging their value to specific external assets, including fiat currencies like the US dollar, commodities like gold, or even a diversified portfolio of assets.
Changpeng Zhao Refutes Claims of Stablecoin Delisting
In a separate report, Changpeng Zhao "CZ", the CEO of Binance, has refuted the speculations regarding the delisting of stablecoins on the platform. CZ emphasized that assumptions about Binance's decision to delist multiple stablecoins were taken out of context, highlighting the exchange's ongoing efforts to establish partnerships for the launch of fully compliant EUR and other stablecoins.
4. It was a question taken out of context. In fact, we have a couple of partners launching EUR and other stable coins, in fully compliant manners of course.
— CZ ???? Binance (@cz_binance) September 21, 2023
Meanwhile, in an ongoing investigation by the US Securities and Exchange Commission (SEC) into Binance.US, a dispute recently emerged surrounding the use of custody software known as Ceffu. CZ has denied claims that Binance.US used this software, putting him at odds with prior statements made by the legal representatives of Binance.US.
The dispute involves whether Binance.US has been utilizing Ceffu, previously associated with its international parent company, Binance Holdings Ltd (BHL). Binance.US' lawyers had acknowledged the use of this custody software, even adopting the name "Ceffu" as a convenient reference when communicating with the SEC.
This legal battle has intensified with the SEC's recent push for an extensive investigation into Binance.US' asset custody practices. This move by the SEC followed allegations of evasive responses and shifting narratives by Binance.US.
The SEC's legal pursuit of Binance.US began in June, with the regulatory authority filing a lawsuit that targeted not only Binance.US but also its parent company, Binance Holdings, and CZ. The primary allegation in the lawsuit revolves around the operation of an unlicensed securities exchange, raising significant concerns regarding investor protection and adherence to regulatory guidelines.
This article was written by Jared Kirui at www.financemagnates.com.
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