Binance, the world’s leading cryptocurrency exchange, has announced its readiness to comply fully with the new regulatory conditions passed by the European Parliament. According to Changpeng Zhao (CZ), CEO of Binance Exchange, the process is pragmatic and provides clear rules for crypto exchanges to operate in the EU. CZ made the statement in a tweet following the lawmakers’ votes in favor of a new crypto regime in the EU. The new regulations are known as Markets in Crypto-Assets (MiCA), and the EU has become the first prominent jurisdiction to introduce a comprehensive crypto law across the globe.
The CEO of Binance further stated that the move will introduce tailored regulations for crypto to protect users and support innovation. However, while acknowledging the overall process to be a good idea, CZ noted that the fine detail that will come up later would matter. The EU’s new regulatory conditions have been welcomed by many in the cryptocurrency industry, as it provides clarity and a framework for the industry to operate within.
On Thursday, April 20, 2023, the European Parliament voted overwhelmingly in favor of the new crypto regulatory conditions, with 517 lawmakers voting in favor and only 38 against. Only 18 lawmakers abstained from the voting process. The EU has become the first prominent jurisdiction to introduce a comprehensive crypto law across the globe. The new regulations will introduce tailored regulations for crypto to protect users and support innovation.
In a separate development, the lawmakers voted overwhelmingly to favor the Transfer of Funds regulation. This law requires crypto operators to identify their customers to check money laundering. The vote count for this law was 529 – 29, with 14 abstentions. The new regulations have been welcomed by many in the cryptocurrency industry, as it provides clarity and a framework for the industry to operate within.
While announcing the willingness of Binance to comply with the new laws, CZ mentioned it would take the exchange between 12 to 18 months to be in a position for full compliance. Binance has always been committed to regulatory compliance, and the new regulations will not affect its operations in the EU. The exchange has been conducting regular reviews of its products across different markets to ensure regulatory compliance.
In a follow-up tweet, the Binance support team responded to a user who asked if the new regulations would enable Binance to return to Germany. The team clarified that there are products the Binance exchange currently provides to customers in Germany. Binance suspended the offering of derivatives and futures products in Germany after becoming restricted in 2021. The restriction prohibited banking institutions from selling or storing cryptocurrencies. However, citizens can still open accounts and trade regular crypto products and services on the exchange.
In conclusion, the new regulatory conditions passed by the European Parliament have been welcomed by the cryptocurrency industry, as it provides clarity and a framework for the industry to operate within. Binance, the world’s leading cryptocurrency exchange, has announced its readiness to comply fully with the new regulatory conditions. The exchange has been conducting regular reviews of its products across different markets to ensure regulatory compliance. The EU has become the first prominent jurisdiction to introduce a comprehensive crypto law across the globe.
