Binance CEO Confirms Continued Support For USDC In EU

Godfrey Benjamin
July 2, 2024
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Highlights

  • Binance CEO Richard Teng says the exchange will continue to support USDC in the EU
  • This update comes after the stablecoin issuer bagged a rare license in the region
  • USDC now remain the global regulated stablecoin under MiCA provisions

Binance has confirmed continuous support for the United States Dollar-pegged stablecoin USD Coin (USDC) in the European Economic Area (EEA).

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Binance Backs USDC Post EMI License 

In an earlier X post, Binance CEO Richard Teng shared news of USDC’s new status in the EEA region. He precisely stated that the USD-pegged stablecoin is now regulated in the region.

In other words, USDC is now compliant with the Market in Crypto Asset (MiCA) regime that is now active in the European Union. As a result, its availability for trading is guaranteed on the leading cryptocurrency exchange to residents of the EEA region.

This was achieved after Circle became the first global stablecoin issuer to secure an Electronic Money Institution (EMI) license in the EEA. The EMI license allows firms to offer dollar or euro-pegged crypto tokens including stablecoins in line with the new MiCA rule. USDC is now referred to as a MiCA-compliant e-money token (EMT), marking a positive sentiment for the cryptocurrency sector. The Binance CEO is hopeful that many other MiCA-compliant EMTs will always up in no distant time.

It is worth noting that this new development underscores Circle’s expansion across several regions. It also positions the issuers ahead of its close rival Tether. In the meantime, it is not yet certain if the USDT issuer will also obtain an EMI license.

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Tether Frowns at MiCA Regulatory Framework 

The chances of Tether getting a MiCA license appears slim especially after the firm reasoned that the MiCA regulatory framework is detrimental to the stablecoin market.

Meanwhile, Tether recently suspended the issuance of USDT on both the Algorand and EOS public blockchains. The stablecoin issuer carefully considered the community interest, maintainability, and usage of the stablecoin on both blockchains before making this decision. Tether says it usually look out for the safety, usability, and sustainability of its token on any potential blockchain. From all indications, EOS and Algorand fell short of its standards.

The withdrawal of USDC from these blockchains was quickly complemented with a significant partnership with UQUID. The collaboration will enable Filipinos to pay their Social Security System (SSS) contributions using USDT on the TON blockchain.

Even if an EMI licence is not in the picture for Tether, it seem to have other good things going on for it.

Read More: Cardano Founder Calls for Crypto Focus in U.S. Election Voting

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.