EU’ MiCA may act as international regulatory standard, says Binance CEO
The chief executive officer of the Binance crypto exchange appreciated the regulatory framework designed by MiCA for European countries and claimed that other regulators can copy it as an international crypto regulatory standard.
Changpeng Zhao is CEO of Binance Crypto exchange and Binance is the first-ranked crypto platform by 24 hours trade volume. The exchange always remains ready to help other crypto companies & govt agencies to help against the bad actors.
On 14 September, During the Binance Blockchain Week in Paris, Zhao said that the proposed regulatory framework by the European Union’s Markets in Crypto-Assets (MiCA) is fantastic and it can be considered a better regulation framework, which can be adopted as an international crypto regulation framework
After the introduction of MiCA’s regulatory framework in the future, any crypto company will be able to operate crypto services among 27 EU members with only a single crypto license.
However, on one hand, Zhao appreciated the crypto regulatory framework of MiCA but on the other side, he opposed the strict policy of MiCA, which is not adopting US dollar-backed stablecoins.
According to Binance’s CEO, US dollar-backed stablecoins are an important part of this crypto industry in the current scenario because ¾ liquidity of the market is dependent on these USD stablecoins.
“The drafts are not adopting USD-based stablecoins which have 75% of the liquidity in the market.”
The proposed laws by the MiCA also prohibit the issuance or use of algorithmic concept-based stablecoin, like UST, and also confirmed that only fully pegged 1:1 stablecoins will be allowed to operate, to manage the situation in case of insolvency unlike TerraUSD which collapsed badly and people are still seeking to get their funds back.
In the event, Zhao confirmed that Exchange aimed to expand its hand in Paris via the hiring of “hundred more” under the friendly laws & tax policies.
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