Binance, the world’s largest crypto-asset exchange, has warned its customers that a new European Union proposed law called Markets in Crypto Assets (MiCA) may result in the removal of some stablecoins from the exchange. MiCA is a proposed regulatory framework for the EU crypto asset sector, which covers the offerings, trading, and safeguarding of digital assets.
The law is meant to bring more transparency and regulatory certainty to the crypto asset sector, but it could come at a cost to some digital currencies and assets. Specifically, some compliant stablecoins may be unable to meet the requirements under MiCA and, as such, may be delisted from the Binance exchange.
Bitcoin, Ethereum, and other major crypto assets are not likely to be affected due to MiCA, as their properties do not require them to have additional regulatory requirements. However, Binance has warned that certain stablecoins may no longer be available once MiCA is rolled out.
Stablecoins are digital currencies that are tied to a stable asset or reserve currency, such as the U.S. dollar, while remaining subject to fluctuating demand and supply like other cryptocurrencies. Given their utility in global payments and store of value, certain stablecoins are especially popular on exchanges, such as Binance.
While Binance does not provide an exact list of affected assets or their associated regulatory criteria, the exchange has indicated that stablecoins that are non-custodial or pegged to non-fiat currencies may be affected the most. Ultimately, the MiCA legal framework will have to be fleshed out before a more certain list of impacted assets can be provided.