Speaking at the Week Blockchain Binance in Paris yesterday (September 14), Changpeng Zhao, founder and CEO of Binance, said the European Union's landmark regulation on “Markets in the Asset Industry cryptocurrency"(MiCA) may be the global regulatory oversight standard, but it's too tight stablecoins.
… while saying #MiCA is a “fantastic regulation”, as it harmonises rules and allows to #passport licenses, @cz_binance also pointed to the issues to be cleaned and open questions that should be addressed, such as the limits imposed on #USD referencing #stablecoins ️— Blockchain for Europe (@BlockchainforEU) September 14, 2022
He emphasized that this regulation benefits entrepreneurs and businesses cryptocurrency. “Instead of applying for 27 permits, just one, like a passport.”
But like many other experts, he expressed concern that legislative limits on stablecoins will be a barrier to the development of the market, especially for assets that are not priced in euros. However, CZ still concluded that "overall, MiCA is great".
“The bill is unfavorable for USD-based stablecoins, which account for 75% of market liquidity.”
At dawn on July 1, MiCA was officially approved by all three sides of the European Parliament, Council and Commission after 2 long years of "bargaining". Accordingly, this will be the legal framework crypto for all 27 EU member states. MiCA has been welcomed by the entire industry as it can help boost credibility, boost adoption by conventional banks, and give crypto companies a single license to operate across the block. .
Additionally, Zhao said that Paris is “probably…the financial center for cryptocurrencies in Europe and much of the world.” The CEO once praised France for being uniquely positioned to become the leading region of the crypto industry in Europe at Blockchain Week Paris 2022. He hopes the industry crypto in France will "boom" over the next five years, which will be supported by lower tax rates and easier employment laws.
In May, the French Financial Market Supervisory Authority (AMF) granted Binance a license to provide digital asset services. This is an important milestone for Binance to start legal operations in this European country including custody, exchange and crypto trading platform operation.