Binance: The EU MiCA legislation will become a key milestone in global stablecoin regulation

2024-10-15 22:24:05

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ChainCatcher news, according to Cointelegraph, Binance recently stated that the upcoming EU regulation on crypto assets (MiCA) will be a key milestone for global stablecoin regulation. The legislation is set to come into full effect on December 30, 2024, and is the first comprehensive regulatory framework for crypto.

A Binance spokesperson emphasized that MiCA will enhance market stability and consumer protection while promoting innovation by establishing clear rules for issuance, reserve management, and redemption. The legislation is expected to become a global benchmark, encouraging other jurisdictions to develop compatible frameworks and improve cross-border compatibility.

However, a report from Binance pointed out that the strict implementation of MiCA could pose challenges for stablecoin providers. The report stated that if the regulations are interpreted strictly, decentralized finance (DeFi) protocols may need to comply with the same licensing and KYC requirements as traditional financial service companies, which could be difficult for many DeFi protocols to accept.

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