Binance CEO supports bill on cryptocurrency regulation in Europe

Changpeng Zhao, founder and CEO of cryptocurrency exchange Binance, has suggested that the EU’s Markets in Crypto Assets legislation (MiCA) is likely to be adopted globally as the standard for cryptocurrency regulatory policy. Zhao discussed this at Binance Blockchain Week, an event currently taking place in Paris. However, the head of Binance expressed some concerns about limiting the issuance of stablecoins pegged to the US dollar. Changpeng Zhao believes that this could lead to their possible ban in the EU.

In June, EU lawmakers agreed to the main policy provisions of the MiCA, which will allow cryptocurrency companies to operate in the 27 member states under a single license. Some in the industry are concerned that a legal restriction on the widespread use of stablecoins as a means of payment could limit the market. However, Zhao called the MiCA «fantastic» and said he expects the bill to be seen as a «global standard» in cryptocurrency regulation for copycatting in other jurisdictions.

The MiSA will allow Europe to become the first part of the world to establish clear rules for digital assets. However, the law on cryptocurrency regulation will not include control over DeFi (decentralized financial systems). In 2023, the European Commission plans to publish a separate report on this issue and launch a pilot project for «DeFi supervision».

The EU has also recently announced the conditions for launching its own cryptocurrency. Currently, the European Commission does not perceive blockchain as a potentially important technology that can be used at the state level. The agency believes that it is first necessary to prove that the technology is safe and has sufficient bandwidth. Therefore, the EU is inclined to believe that the digital currency will start working no earlier than 2026.