Europe’s Crypto Rules “Fantastic”, Strict for Stablecoins: Binances’ CZ

Paigambar Mohan Raj
Source: AML Intelligence

Binance founder and chief, Changpeng Zhao, aka CZ, spoke at the Binance Blockchain Week Paris 2022. During his speech, CZ said that the proposed crypto rules for Europe, MiCA (Market in Crypto Assets), are “fantastic.” However the founder of the world’s largest crypto exchange did say that the rules were a little strict towards stablecoins.

CZ highlighted that the drafts do no adopt “USD-based stablecoins which have 75% of the liquidity in the market.” Nonetheless, CZ expects the European rules to be viewed as the global standard.

The Binance chief went as far as to call Paris “the financial hub for crypto in Europe and the larger part of the world.” CZ expects the crypto industry in France to take off within the next five years. However, he did say that the growth can be supported by lower taxes and easier employment laws. France has historically had a highly regulated labor market, making it more expensive for businesses to hire and release.

Binance is happy with MiCA?

The major political tenets of MiCA were accepted by EU legislators in June. This would enable cryptocurrency businesses to operate throughout the 27 member states of the union with a single license. Nonetheless, some in the business are worried that a legal restriction on stablecoins’ widespread use as a form of payment may limit the market, especially for assets not priced in euros.

In May, Binance received its approval from France’s capital market regulator, the AMF (Autorité des marchés financiers), for registration as a Digital Asset Service Provider (DASP). The registration gave Binance the right to hold onto digital assets, make it easier to buy, sell, and exchange, and run a trading platform for those assets.

Furthermore, Binance has ambitions to hire a couple of hundred additional workers by the end of the year. The exchange has already hired 150 staff for its operations in Paris.