- Last Thursday, the EU Parliament passed new crypto regulatory conditions.
- Binance CEO, CZ promised his exchange will comply fully with the new regulation.
- It would take Binance between 12 to 18 months to be in a position for full compliance.
Binance is ready to adjust its services to comply fully with the new regulatory conditions passed by the European Parliament, according to Changpeng Zhao (CZ), CEO of Binance Exchange. CZ made the statement in a tweet following the lawmakers’ votes in favor of a new crypto regime in the EU.
The European Parliament voted for MiCA to be implemented.This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation. The fine details will matter, but overall we think this is a pragmatic solution to…— CZ Binance (@cz_binance) April 20, 2023
CZ stated the process is pragmatic and provides clear rules for crypto exchanges to operate in the EU. According to him, 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.
On Thursday, April 20, 2023, the European Parliament voted 517- 38 in favor of new crypto regulatory conditions, otherwise known as Markets in Crypto-Assets (MiCA). Only 18 lawmakers abstained from the voting process. Through this development, the EU has become the first prominent jurisdiction to introduce a comprehensive crypto law across the globe.
In a separate development, the lawmakers voted overwhelmingly to favor the Transfer of Funds regulation. It is a law that requires crypto operators to identify their customers to check money laundering. The vote count for this law was 529 – 29, with 14 abstentions.
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.
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. It stated that the exchange conducts regular reviews of its products across different markets to ensure regulatory compliance. 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.
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