By George Ward
In the wake of the successful passage of the Markets in Crypto Assets (MiCA) legislation in April, numerous cryptocurrency enterprises, including Binance, seek to secure operational licenses in the European Union (EU) bloc. Accordingly, Kiril Kharmiakov, a Binance executive, states that the crypto exchange is ahead of others.
Binance Has an Edge
Speaking at the Next Block Expo held in Warsaw, Poland, Kiril Khomiakov, General Manager for Central and Eastern Europe at Binance, confidently asserted that the crypto exchange is at the forefront of securing an operating license that guarantees its operations across the EU bloc.
According to Khomiakov, the world’s largest digital asset trading platform is nearly 90% ready for MiCA based on its robust compliance system. While speaking at a recent interview, the Binance executive disclosed that the company is also on the verge of submitting an official application once the MiCA licensing process begins.
Highlighting Binance’s existing licenses in multiple countries within the bloc, such as France, Spain, Lithuania, and Italy, Khomiakov emphasized the similarity between MiCA requirements and the current regulations in these nations. He confidently stated, “A significant portion of it is already in place.”
The Binance executive highlighted that the approval of MiCA presents an opportunity for increased efficiency. He added that a single license would function as a universal passport, enabling the firm’s operations across all 27 member nations.
Beyond the direct implications for Binance, Khomiakov conveyed his positive outlook regarding the broader influence of MiCA regulations on the cryptocurrency industry within the EU. When asked whether MiCA would be the catalyst for turning Europe into a crypto hub, the Binance executive responded that friendly taxes and regulations attract crypto investors and businesses.
He cited Dubai and Portugal and reiterated that the coming of MiCA into Europe’s crypto space could cause similar growth.
The Crypto-Debanking Issue
Contrary to concerns over the de-banking of cryptocurrency firms across Australia, including Binance’s Australian operation, CEO Changpeng Zhao affirms that his company is not inclined to acquire banking institutions to respond to the situation. Despite the prevailing worries, Zhao emphasized that Binance remains committed to navigating the challenges without resorting to such measures.
The recent downfall of multiple banks in the United States has raised apprehensions regarding the diminishing number of crypto-friendly banking institutions. This year, notable banks like Silvergate, Signature Bank, and Silicon Valley Bank succumbed to various challenges and shut down their operations, further exacerbating these concerns.
In a recent development, Binance Australia faced a setback as its payment provider abruptly terminated its support for the exchange, suspending Australian dollar services. As of now, Binance Australia is still in the process of searching for a suitable alternative provider to resume its operations smoothly.
Responding to a Twitter user’s question during his recent appearance on a popular Podcast, the Binance CEO revealed that Binance buying a bank would not solve the issue of allowing financial institutions to engage in cryptocurrency. He added that nothing can be done if the regulatory agency decides that banks will not offer services to crypto firms.
Furthermore, the CEO noted that the cost factor poses a significant challenge, asserting that Binance would face the daunting task of generating substantial profits if it should acquire a bank or a network of banks.
Despite acknowledging the potential benefits, CZ underscored the pragmatic considerations that must be carefully evaluated before venturing into such endeavors. The Binance boss stated that banks are costly and require vast funds for smooth operations. He further noted that the amount of capital and the regulatory requirements are high, and most banks lacked sound business models to function seamlessly.
However, Zhao revealed an alternative approach that Binance is considering: investing in smaller banks. Thus, it can positively influence these financial institutions, fostering an environment that embraces cryptocurrency.
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