Binance could delist multiple stablecoins as MiCA takes effect next year

Key takeaways

Binance to delist  multiple stablecoins

A Binance executive has warned that the cryptocurrency exchange could delist multiple stablecoins from its platform. 

The delisting could happen as the cryptocurrency exchange attempts to decipher the implications of the EU’s Markets in Crypto Assets (MiCA) regulation.

At the moment, it is still unclear how MiCA will apply to decentralized stablecoins and other foreign stablecoin issuers. However, officials from the European Banking Authority (EBA) have pointed out that the regulation immediately applies to coins already on the market.

MiCA was approved last June and will make the EU the first major region in the world to roll out a comprehensive crypto regulation. The regulation would allow crypto exchange and wallet providers to operate across the EU using a single license. 

MiCA’s regulation on stablecoins is set to come into effect in June 2024. Marina Parthuisot, Head of Legal at Binance France, told an online public hearing hosted by the EBA that

“We are heading to a delisting of all stablecoins in Europe on June 30, given that no project has yet been approved. This could have a significant impact on the market in Europe compared to the rest of the world.”

Binance continues to face regulatory pressure

This latest cryptocurrency news comes as Binance continues to face regulatory pressure in the US and other parts of the world. The company’s CEO, Changpeng “CZ” Zhao, hailed MiCA’s clear rules. However, the exchange has exited some European countries, including the Netherlands, Cyprus and Germany, due to regulatory challenges. 

The crypto exchange is still locked in a court case with the United States Securities and Exchange Commission (SEC). Earlier this week, a US court denied the SEC’s request to look into Binance.US’s documents. 

The case continues to affect Binance.US’s performance, with its daily trading volume significantly down in recent months.