According to ChainCatcher, according to Cointelegraph, Binance recently stated that the EU's upcoming Crypto Asset Market Regulation (MiCA) Act will become a key milestone in global stablecoin regulation. The bill is scheduled to take full effect on December 30, 2024 and is the first comprehensive crypto regulatory framework.

A Binance spokesperson emphasized that MiCA will enhance market stability and consumer protection while promoting innovation by establishing clear issuance, reserve management and redemption rules. The bill is expected to become a global benchmark, promoting other jurisdictions to develop compatible frameworks and enhance cross-border compatibility.

However, a report from Binance pointed out that the strict implementation of MiCA may bring challenges to stablecoin providers. The report stated that if the regulations are strictly interpreted, decentralized financial (DeFi) protocols may need to comply with the same licensing and KYC requirements as traditional financial services companies, which may be unacceptable to many DeFi protocols.