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Stablecoins are cryptocurrencies tied to the value of other assets like gold or the U.S. dollar. According to Changpeng Zhao (CZ), founder and CEO of Binance, the European Union's (EU) landmark Market in Crypto Assets (MiCA) law is "a little bit severe" on these cryptocurrencies. https://twitter.com/binance/status/1569966899684859907
Binance Blockchain Week in Paris
The draughts do not include USD-based stablecoins, which account for 75% of the market's liquidity, Zhao stated on Wednesday at Binance Blockchain Week in Paris. The central political tenets of MiCA were approved by EU lawmakers in June, enabling cryptocurrency businesses to operate throughout the 27 member states of the union with a single license. Some in the sector are worried that a legal restriction on stablecoins' widespread use as payment methods may limit the market, especially for assets not valued in euros. Despite this, CZ called MiCA "fantastic" and predicted it would become the "global standard" for crypto regulation that other countries would imitate. CZ also said Paris is "probably the financial hub for crypto in Europe and the larger part of the world" and expects the industry in France to "explode" in the next five years, fueled by lower taxes and much easier employment laws.
EU's Proposed Crypto Rules
Historically, France's labor market has tighter controls than the U.K., U.S., and even many EU nations, making it more expensive for businesses to hire and fire employees. Trade unions objected to President Emmanuel Macron's plans in 2017 to reduce some of these expenditures. According to CZ, Binance has already hired 150 individuals for its operations in Paris, with ambitions to add "a couple of hundred more" by the year's end. In May, Binance got approved for registration as a Digital Asset Service Provider (DASP) with France's capital market regulator, the Autorité des marchés financiers (AMF).