Crypto Market Turmoil Ahead? Binance Predicts Massive Stablecoin Delisting

Crypto Market Turmoil Ahead? Binance Predicts Massive Stablecoin Delisting

Binance has raised concerns about how the Market in
Crypto Asset (MiCA) regulation will apply to decentralized and foreign issuers.
One of the exchange’s concerns is its provisions regarding stablecoins. These
digital assets, whose values are tethered to traditional assets like fiat
currency or precious metals, face a critical moment as MiCA’s provisions on
stablecoins are scheduled to take effect in June 2024.

Binance Raises Concerns about MiCA

Marina Parthuisot, the Head of Legal at Binance
France, expressed her apprehension during an online public hearing hosted by
the European Banking Authority (EBA), stating that without any project
approvals yet, Europe could be heading towards a delisting of all stablecoins
by June 30. This, she believes, could significantly impact the European crypto
market compared to the rest of the world.

The European Banking Authority (EBA) and the
European Securities and Markets Authority (ESMA) are currently in the process
of fine-tuning the finer details of MiCA. This process includes addressing
critical questions about how the regulation will apply to decentralized and
foreign issuers.

At their core, stablecoins are a category of
cryptocurrencies designed to mitigate price volatility in digital currencies.
Unlike Bitcoin or Ethereum, which can experience high price fluctuations,
stablecoins are designed to maintain a stable value. They achieve this
stability by pegging their value to specific external assets, including fiat
currencies like the US dollar, commodities like gold, or even a diversified
basket of assets.

CZ Refutes Claims of
Stablecoin Delisting

In a separate report, Changpeng „CZ” Zhao, the CEO of Binance, has refuted the
speculations regarding the delisting of stablecoins on the platform. CZ
emphasized that assumptions about Binance’s decision to delist multiple
stablecoins were taken out of context, highlighting the exchange’s ongoing
efforts to establish partnerships for the launch of fully compliant EUR and
other stablecoins.

Meanwhile, in an ongoing investigation by the US Securities and Exchange Commission (SEC) into Binance.US, a dispute recently
emerged surrounding the use of custody software known as Ceffu. CZ has denied claims that Binance.US used this software, putting him at
odds with prior statements made by the legal representatives of Binance.US

The dispute involves whether Binance.US has been utilizing Ceffu, previously associated with its international parent company,
Binance Holdings Ltd (BHL). Binance.US’ lawyers had acknowledged the
use of this custody software, even adopting the name „Ceffu” as a
convenient reference when communicating with the SEC.

This legal battle has intensified with the SEC’s
recent push for an extensive investigation into Binance.US’ asset custody
practices. This move by the SEC followed allegations of evasive responses and
shifting narratives by Binance.US.

The SEC’s legal pursuit of Binance.US began in June,
with the regulatory authority filing a lawsuit that targeted not only
Binance.US but also its parent company, Binance Holdings, and CZ. The
primary allegation in the lawsuit revolves around the operation of an
unlicensed securities exchange, raising significant concerns regarding investor
protection and adherence to regulatory guidelines.

This article was written by Jared Kirui at www.financemagnates.com.

About Post Author

admin

zobacz więcej na: ortopedyka.net , codziennie ciekawe tematy oraz informacje. | trampolina ogrodowa Katalog firm Baza przychodni weterynaryjnych Katalog stron PEKSI WP web site Katalog stron Osuszanie Wodzisław Śląski Internetowy sklep zoologiczny