Key facts
- Binance and other crypto exchanges must comply with the EU's MiCA licensing deadline by July 1.
- US spot Bitcoin ETFs saw their largest daily outflows of June on Thursday, totaling $696.3 million.
- Bitcoin's price dropped below $60,000.
- Tether's USDt surpassed Ether in market capitalization.
- MiCA aims to create a unified licensing regime across the EU for crypto assets.
Binance and other cryptocurrency exchanges are approaching a critical European Union deadline for licensing under the Markets in Crypto-Assets (MiCA) framework, with Spain's securities regulator indicating no extensions will be granted beyond July 1. This regulatory hurdle could compel Binance to reduce its services across the bloc, as it has yet to secure a MiCA license after withdrawing its application in Greece. Rival exchanges like Kraken have already obtained the necessary licenses.
The MiCA framework is designed to establish a single licensing regime throughout the EU, enhancing oversight of crypto services. Failure to comply by the deadline may result in Binance halting new customer onboarding and restricting services for existing users until compliance is achieved, potentially impacting its significant European user base.
In parallel, US-listed spot Bitcoin exchange-traded funds (ETFs) experienced their largest daily net outflows of June on Thursday, with $696.3 million withdrawn, as Bitcoin's price fell below $60,000. This trend contributed to June's total outflows reaching $3.61 billion and year-to-date net outflows hitting $4.6 billion. Signs of slowing institutional demand are also evident, with MicroStrategy reportedly reducing its Bitcoin accumulation pace.
Furthermore, Tether's USDt stablecoin has surpassed Ether in market capitalization, becoming the second-largest cryptocurrency. Ether's market cap fell below $185 billion following a 5.2% price drop, sending its price to $1,510. Analysts suggest this shift highlights a market preference for stability over Ether's current volatility, underscoring the growing significance of stablecoins, which now represent nearly 15% of the total crypto market capitalization.