Marina Parthuisot, who serves as the head of legal at <a href="https://financefeeds.com/binance-france-loses-4-million-expects-shift-to-profitability-in-2023/" rel="noopener noreferrer nofollow">Binance France</a>, cited the lack of approved stablecoin projects in the region ahead of the upcoming European Union's Markets in Crypto Assets (MiCA) regulation. There is no grace period specified for coins already on the market under this regulation, potentially leading to massive delistings. 
<a href="https://financefeeds.com/b2c2-acquires-france-amf-regulated-crypto-market-maker-woorton-ahead-of-eus-mica/" rel="noopener noreferrer nofollow">MiCA</a> was finalized back in June, and it's set to make the EU the first major jurisdiction with comprehensive cryptocurrency regulations. It will allow exchanges and wallet providers to operate throughout the EU with just one license. However, the implications of this regulation for stablecoins and decentralized projects remain uncertain. 
“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 executive said. 
While stablecoins may still thrive in the face of an interest ban and increased AML measures, it's essential to approach this conclusion with caution and consider potential challenges and uncertainties in the regulatory landscape, he added. 
If a ban on stablecoin interest were to be imposed, it might have the potential to restrict the growth of decentralized finance (DeFi). Additionally, the introduction of more stringent anti-money laundering (AML) regulations for crypto-assets could significantly influence transaction practices within the crypto space. 
Elizabeth Noble, who leads the MiCA team at the EBA, responded to Parthuisot, emphasizing the regulations’ immediate impact, "There is no transitional arrangement for these types of stablecoin tokens. The rules will apply from the end of June next year." 
Under the approved&nbsp;<a href="https://financefeeds.com/consensus-2023-fv-bank-founders-discuss-collapse-of-crypto-banks-regulation-landscape/" rel="noopener noreferrer nofollow">MiCA regulation</a>, platforms operating in the European Union will have an obligation to provide consumers with clear and comprehensive information about the risks associated with their services. 
Meanwhile, stablecoin issuers will be required to maintain sufficient reserves to back their stablecoins and ensure they can meet redemption requests in the event of mass withdrawals. Additionally, if a stablecoin reaches a significant size, it may be subject to further restrictions. Specifically, stablecoins that exceed a certain threshold may be limited to conducting transactions of up to 200 million euros ($220 million) per day. This limitation is likely implemented to address concerns related to financial stability and systemic risk.

Binance to delist all stablecoins in Europe next year

FinanceFeeds

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