In light of the Markets in Crypto-Assets Regulation (MiCA) which institutes uniform EU market rules for crypto-assets, there were rumours spread that cryptocurrency exchange Binance would delist stablecoins. While news outlets reported that a Binance official has warned about widespread delisting of stablecoins due to upcoming European Union regulations, Binance CEO Changpeng Zhao publicly dismissed these speculations on X (previously Twitter).

The European Securities and Markets Authority (ESMA) and its sister agency, the European Banking Authority (EBA), are currently working together to clarify the specifics of MiCA’s regulations regarding stablecoins. These are crypto assets whose value is linked to other assets like fiat currency or gold for which the provisions may take effect in June 2024. The implementation phase of MiCA is illustrated below:

Misinformation can spread quickly in today’s fast-paced news environment. Rumours recently circulated that Binance would be delisting stablecoins from its EU platform. However, CEO Changpeng Zhao dismissed the rumours as false and that Binance is fully compliant with the EU’s crypto bill. They will have listed regulated stablecoins as EUR and other stablecoins.

Marina Parthuisot, Head of Legal at Binance France, expressed concerns about the lack of stablecoin approvals during an EBA-hosted online public hearing. She warned of potential market implications in Europe, which could lead to a complete delisting of stablecoins by June 30. 

Despite appreciating the clarity provided by MiCA regulations, CZ noted that regulatory challenges have forced Binance to withdraw from several European countries, including the Netherlands, Cyprus, and Germany. Parthuisot mentioned the possibility of a delisting of all stablecoins stating, 

We are heading to a delisting of all stablecoins in Europe on June 30. This could have a significant impact on the market in Europe compared to the rest of the world.

Binance CEO responded to the reports stating that they have partnered with a few companies to launch EUR and other stablecoins in a fully compliant manner. He also clarified that Parthuisot’s comments were taken out of context and used his usual shorthand “4” to allege attacks and fake news.

The European Union’s MiCA regulations will put an end to algorithmic stablecoins and fiat-backed stablecoins will be required to have a liquid reserve with a 1:1 ratio. Also, stablecoin issuers will need to implement procedures to protect their backing and reserve assets.