Approved by EU authorities the regulation bill for cryptocurrencies MiCA is “fantastic”, but “a bit strict” with regard to stablecoins. This assessment was given by Binance chief Changpeng Zhao.
The document describes rules that apply to issuers of unsecured crypto assets, “stablecoins”, trading and custody platforms.
“The bills do not accommodate USD-backed stablecoins, which account for 75% of liquidity in the market,” Zhao said during Binance Blockchain Week Paris.
However, he praised the EU authorities’ work. In his view, the document could become “a global standard” in regulating cryptocurrencies for other jurisdictions.
The head of the Bitcoin exchange also called Paris a potential “crypto-financial center of Europe and a large part of the world”. Zhao suggested that in the next five years the industry in France will “explode” thanks to favourable taxation and simpler employment legislation.
In 2017, French President Emmanuel Macron carried out a reform designed to reduce unemployment. It simplified the system of relations on the labour market. According to Zhao, Binance has already hired 150 people at the Paris office and plans to expand the staff “by a couple hundred” by the end of 2022.
In April the exchange announced a partnership with the French startup incubator Station F and investments of €100 million as part of expanding its presence in Europe.
One month later Binance obtained a license as a provider of services on the digital asset market from AMF, as well as approval to custody and trading of cryptocurrencies.
Earlier, former CFTC chairman Christopher Giancarlo warned that EU regulation efforts threaten to impose the European model and would hamper the ability of US regulators to craft their own rules effectively.
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