Crypto exchange giant Binance outlined a Thursday consultation with the European Banking Authority regarding stablecoin-specific regulations in the European Union's Markets in Crypto Assets (MiCA) legislation.
Binance said that some of the conversation centered on whether stablecoin operators can get a grace period when applying for Electric Money Institution (EMI) licenses in compliance with MiCA, which requires stablecoin issuers obtain an EMI license in the EU or else have their asset delisted from EU exchanges.
"Currently, none of them do," Binance wrote in a Thursday statement. "While we are confident that there will be a constructive solution in place before the mid-2024 deadline, if left as is, this could have an impact on the European crypto market and the competitiveness of European crypto exchanges in a global market."
"As an exchange that believes in the value of regulation and the pragmatic benefits of MiCA, we believe it’s important that these constructive conversations take place to help ensure that MiCA achieves its goals and any unintended consequences are reduced," Binance added.
"The broad intent of MiCA is overwhelmingly positive for the crypto industry. As always, there are critical technical details that must be worked through," it continued. "We will continue to work constructively with regulators and engage on these important conversations in the interest of helping to grow the crypto markets around the world."
Binance's CEO Changpeng 'CZ' Zhao has previously expressed support for MiCA, stating that it would be the "global regulatory standard copied around the world" since it helps streamline the number of licenses a digital asset provider must apply for.
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