Binance Joins MiCA Discussion With European Banking Authority

Binance, one of the largest cryptocurrency exchanges globally, has revealed its recent consultation with the European Banking Authority (EBA) concerning the regulatory framework for stablecoins within the European Union’s Markets in Crypto Assets (MiCA) legislation.

During this consultation, Binance raised the issue of whether stablecoin operators could be granted a grace period when seeking Electric Money Institution (EMI) licenses in compliance with MiCA. This legislation mandates that stablecoin issuers must obtain an EMI license in the EU, or else their assets face delisting from EU-based exchanges.

In a statement released on Thursday, Binance noted, “Currently, none of them [stablecoin operators] do.” The exchange expressed confidence that a constructive solution would be found before the mid-2024 deadline. However, it also cautioned that the absence of such a solution could potentially impact the European crypto market and the competitiveness of EU-based crypto exchanges in the global arena.

Binance emphasized its belief in the value of regulation and the practical advantages offered by MiCA. The exchange highlighted the importance of these discussions to ensure that MiCA achieves its intended objectives and mitigates any unforeseen consequences.

“The overarching goals of MiCA are overwhelmingly positive for the cryptocurrency industry. As with any legislation, there are crucial technical details that need to be addressed,” Binance continued. “We remain committed to collaborating with regulators and actively participating in these vital conversations to foster the growth of cryptocurrency markets worldwide.”

Binance’s CEO, Changpeng ‘CZ’ Zhao, has previously expressed support for MiCA, describing it as a potential “global regulatory standard” that could simplify the licensing process for digital asset providers, reducing the administrative burden they face.

Image Credit: Shutterstock