Binance reported about the risk of delisting of stablecoins on the territory of the EU
Representatives of the crypto platform Binance have admitted the possibility of delisting of steiblcoins in Europe. This could happen because the company’s lawyers have not found a way to meet the new MiCA (“Markets in Cryptoassets Regulation”) criteria approved in the EU in spring 2023.
The MiCA rules for stablecoins will come into effect early next summer. In the meantime, European regulators have organized consultations regarding the implementation of the new requirements.
According to them, issuers of stablecoins must be registered in the EU. The point about how the law will apply to decentralized and foreign issuers is still a gray area. However, representatives of a European regulator noted that there is no grace period for steblecoins already on the market.
“We are moving towards the delisting of all steiblcoins in Europe on June 30 . This could have a significant impact on the market in Europe as opposed to the rest of the world,” said Marina Partuisot, head of legal at Binance France.
The new requirements have the potential to allow overseas issuers to register with a cryptocurrency provider that is located within the bloc, said Ian O’Mara of law firm Matheson. He said he was skeptical that regulators would approve such an option to meet the criteria.
As a reminder, earlier it was reported that issuers of stablecoins whose reserves include derivatives or covered securities will be subject to new regulatory requirements. More stringent working conditions will be imposed on companies if it is concluded that the tokens issued by them are “significant”.