Binance founder and CEO Changpeng “CZ” Zhao has welcomed the European Union’s (EU) Market in Crypto Assets (MiCA) regulation but expressed concerns over stablecoin rules.
MiCA is an ambitious plan to regulate the digital assets sector, particularly cryptocurrencies, stablecoins, non-fungible tokens and other related goods.
Zhao said the regulation was broadly very good but expressed concerns that the rules concerning stablecoins may be a little too strict.
According to the executive, the MiCA drafts do not enable the adoption of USD-based stablecoins, even though they have 75% of the total market liquidity.
The executive added that MiCA could become a global standard for cryptocurrency regulation, provided some tweaks are made.
The framework may well end up setting a standard as it is put to the test in the EU. Meanwhile, CZ predicts that the industry is set to explode in specific European jurisdictions, such as France.
Binance has already hired more than 150 people in Paris and is planning to keep adding more – in the couple of hundreds. This decision comes against a backdrop of mass layoffs in the industry.
Binance is using its Digital Asset Service Provider license to maintain its position in the French market and has achieved an accreditation from the Autorité des Marchés Finances (AMF) – the French financial regulator.
There are still challenges to the adoption of MiCA. The proposed draft is a pan-European solution that may not necessarily apply to national interests or existing legislation.
This means that MiCA will need to be adjusted as lawmakers go along and look for additional input from national governments.