Binance CEO: EU’s Proposed Crypto Rules ‘Strict’
Binance founder and CEO Changpeng “CZ” Zhao reportedly said the EU’s proposed cryptocurrency regulation is “fantastic,” though he has some reservations about it.
On Wednesday (September 14) at the Binance Blockchain Week event in Paris, the crypto exchange leader said the proposed EU regulation called Market in Crypto Assets (MiCA) is “a bit strict” on stablecoins, CoinDesk reported Wednesday (Sept. 14).
“The drafts do not adopt USD-based stablecoins, which have 75% of the liquidity in the market,” Zhao said at the event, according to the report.
Still, Zhao added that he expected other non-EU jurisdictions to copy the MiCA, according to the report.
PYMNTS reported on August 23 that MiCA’s stablecoin oversight provisions have been particularly controversial, particularly regarding a cap on the use and issuance of large, non-euro-denominated stablecoins.
Read more: A Primer on EU Stablecoin Regulations
Except, one basic principle is not so dissimilar to US proposals: Stablecoins must be backed 100% by reserves of fiat currency or highly liquid assets.
Stablecoin holders will have the right to redeem them free of charge from the issuer at any time, the European Council said.
European Central Bank president and stablecoin critic Christine Lagarde said: “This needs to be controlled, monitored and regulated so that consumers and users of these devices can actually be guaranteed against potential misrepresentation.”
As PYMNTS reported on September 1, the text of the MiCA could be ready in weeks.
Read more: EU legislator says MiCA Crypto Law could be ready in October
The legislation requires providers of cryptoassets to register with regulators to offer services in the EU. The point of the law is to create parameters for how all EU member nations regulate crypto, such as creating a common licensing regime, which makes it easier for companies operating in one member nation to roll out in the others.
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