The European Union's Markets in Crypto Assets (MiCA) legislation is likely to adopted globally as the standard for regulatory oversight, Binance founder and CEO Changpeng Zhao said.
“The EU MiCA regulation will become a global regulatory standard copied around the world," Zhao, who is invariably known by his initials CZ, said at a panel kicking off Binance Blockchain Week in Paris on Wednesday.
He highlighted that the regulation benefits crypto entrepreneurs and businesses. “Instead of applying for 27 licences, you just have to apply for one, you will be passportable.”
MiCA regulates cryptocurrencies and service providers across the EU’s 27 member states. European institutions reached an agreement on MiCA in June and it has since generally been welcomed by the crypto industry as means to improve credibility and streamline an otherwise fragmented regulatory landscape.
CZ also expressed some concerns over MiCA, however: particularly its limitations on stablecoins. The current MiCA report restricts the issuance of US dollar-pegged stablecoins, which could lead to their eventual ban from the EU bloc.
Blockchain for Europe and the Digital Euro Association, two lobby groups, share CZ’s concerns and wrote a letter to the EU Council in August to try to undo the restriction as logistical details are ironed out in the European institutions.
“The three largest stablecoins by trade volume are at risk of being banned in the EU from 2024, due to quantitative limits on issuance and use of [e-money tokens] denominated in foreign currency under MiCA,” the letter reads.
Nonetheless, CZ concluded that “overall, MiCA is fantastic”.
As it was being drafted, MiCA was designed to give Europe a headstart in global crypto regulation. The legislation regulates cryptocurrencies and service providers across the EU’s member states.
Stefan Berger, the lead negotiator on MiCA for the European Parliament, told The Parliament Magazine in an email correspondence in March that “because it is the first of its kind, MiCA has the potential to serve as a global role model."
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