Leading crypto exchange Binance on Thursday outlined the details of a consultation it had with the European Banking Authority regarding stablecoin-specific regulations in the European Union’s Markets in Crypto Assets (MiCA) legislation.
One of the key areas of focus for the conversation according to Binance was the question of whether stablecoin operators can be given some time to secure their Electric Money Institution (EMI) licenses in compliance with MiCA, which requires stablecoin issuers obtain an EMI license in the EU or else have their asset delisted from EU exchanges.
“Currently, none of them do,” Binance wrote in a Thursday statement. “While we are confident that there will be a constructive solution in place before the mid-2024 deadline, if left as is, this could have an impact on the European crypto market and the competitiveness of European crypto exchanges in a global market.”
Despite the challenges it is facing in the U.S. on the issues of compliance, Binance is one of the most respected players in the crypto industry, being the largest crypto exchange by trading volume. The exchange is actively working with regulators to arrive at proper regulation not just in the EU, but also in other jurisdictions.
After obtaining a virtual asset license to operate in Dubai, the company is currently working with regulators in the emirate to build a reliable regulatory framework for crypto. It is also doing the same in Kazakhstan where it recently launched its digital asset trading platform. Concerning the EU, Binance said the discussion is vital in helping MiCA achieve its goals.
“As an exchange that believes in the value of regulation and the pragmatic benefits of MiCA, we believe it’s important that these constructive conversations take place to help ensure that MiCA achieves its goals and any unintended consequences are reduced,” Binance added.
MiCA in Support of Crypto
MiCA is a crypto regulatory framework established by the EU to cover crypto assets which are not regulated by traditional finance regulations. The framework was established earlier this year, but is still in development and due to take off next year.
Through this discussion, Binance says that MiCA is an overwhelmingly positive framework towards crypto, unlike what most people might think once they hear about crypto regulation.
Binance’s CEO Changpeng ‘CZ’ Zhao earlier voiced his support for MiCA, stating that it would be the “global regulatory standard copied around the world” because of how it makes application for regulation easier by helping to streamline the number of licenses a digital asset provider must apply for.
“The broad intent of MiCA is overwhelmingly positive for the crypto industry. As always, there are critical technical details that must be worked through,” it continued. “We will continue to work constructively with regulators and engage in these important conversations in the interest of helping to grow the crypto markets around the world,” the exchange stated.
Binance’s Regulatory Woes
Despite playing a major role in bringing about proper crypto regulation around the world, Binance still struggles with the issue of regulation in many jurisdictions, particularly the U.S. The exchange has been in court since June on allegations of securities laws violations by the SEC.
With its continued efforts to ensure full compliance, Binance may succeed in winning the case, especially considering the new turn of events where the courts have mostly ruled in favor of the crypto industry in several cases.