Crypto Market Turmoil Ahead? Binance Predicts Massive Stablecoin Delisting

<p>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, face a critical moment as MiCA's provisions on
stablecoins are scheduled to take effect in June 2024.</p><p>Binance Raises Concerns about MiCA</p><p>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.</p><blockquote><p lang="en" dir="ltr">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 <a href="https://t.co/PDEKnZegE9">https://t.co/PDEKnZegE9</a></p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1704835859592450079?ref_src=twsrc%5Etfw">September 21, 2023</a></blockquote><p>The European Banking Authority (EBA) and the
European Securities and Markets Authority (ESMA) are currently in the process
of fine-tuning the finer details of MiCA. This process includes addressing
critical questions about how the regulation will apply to decentralized and
foreign issuers.</p><p>At their core, <a href="https://www.financemagnates.com/cryptocurrency/what-is-a-stablecoin-how-they-work-and-types/" target="_blank" rel="follow">stablecoins</a> are a category of
<a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> designed to mitigate price <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a> 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
basket of assets.</p><p>CZ Refutes Claims of
Stablecoin Delisting </p><p>In a separate report, Changpeng "CZ" Zhao, 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.</p><blockquote><p lang="en" dir="ltr">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.</p>— CZ