Stable News: Australia, Deobanks, and Binance

We’re excited to share another edition of Stable News, our weekly newsletter written by Lumx Co-Founder and CEO, Caio Barbosa — now also published on our blog. This is your go-to source for staying updated on the most relevant developments in the world of stablecoins and digital payments.

In this edition, we dive into the regulatory milestones shaping global stablecoin adoption, with a spotlight on Australia and the United States. We also discuss the rise of so-called “deobanks,” recent decisions by Binance in Europe, and behind-the-scenes insights from a jam-packed week of events for Lumx in Buenos Aires during the Merge.

Reading time: 6 min

New Regulation in Australia

Recently, the Australian government, led by Anthony Albanese’s Labor Party, took a firm step toward crypto asset regulation. The proposal — expected to become law in 2025 — will require exchanges and stablecoin issuers to obtain an Australian Financial Services License, bringing the sector in line with traditional banking standards.

A key highlight is the government's commitment to addressing debanking — the practice where banks deny services to crypto companies, which hinders innovation and financial access. The plan includes partnerships with the country’s four major banks and a regulatory sandbox that lets startups test solutions without the full burden of licensing.

Amid a cost-of-living crisis, Australia is aiming to balance consumer protection with the economic potential of this technology. For industry leaders like Jonathon Miller from Kraken Australia, this could be a game-changer.

This regulatory model seems to respond to global moves like MiCA in the European Union and the regulatory race happening in the US, Japan, and now, Australia. Tracking these decisions is crucial — not just because we're dealing with a technology that breaks down barriers and connects the world, but because of this growing "domino effect" of regulatory clarity, which will undoubtedly impact countries like Brazil, where regulation is still being developed.

In summary, Australia signals:

✅ Competitive edge: The exemption for non-financial blockchain developers could turn Australia into a hub for technical innovation, attracting global solutions and partnerships.

✅ Push against debanking: Tackling debanking helps not only exchanges but also encourages banks to work with crypto fintechs, building bridges to integrate stablecoins into the traditional financial system.

✅ A replicable model: The Australian sandbox is a way to regulate without stifling growth — if successful, it could pressure regulators worldwide to adopt similar strategies, benefiting other markets.

Wyoming Prepares to Launch a State-Issued Stablecoin

Wyoming, known for its forward-thinking approach to crypto, is set to launch the Wyoming Stable Token (WYST) in July 2025. It will be the first stablecoin issued by a public entity in the US, pegged to the dollar and backed by reserves like short-term Treasury securities, managed by the Wyoming Stable Token Commission.

The plan is to use public blockchains with LayerZero interoperability to enable fast and low-cost payments — from individuals to businesses. Commissioner Joel Revill emphasizes that WYST is not a currency but “a digital expression of a fully reserved dollar,” aimed at reinforcing the dominance of the US dollar. The launch was pushed from May to July due to technical adjustments, reflecting Wyoming's ambition to lead in practical implementation of digital assets.

However, not everyone is on board: critics like Congressman Tom Emmer call WYST a “disguised CBDC,” fearing government surveillance, while advocates like Anthony Apollo envision a future of transparency and efficiency.

Despite differing opinions and the need to clarify user data treatment, this move seems aligned with the impact of the GENIUS Act (previously discussed here), and represents:

✅ Practical leadership: Wyoming shifts from being crypto-friendly on paper to a real-world testbed, potentially inspiring other jurisdictions to explore public stablecoins.

✅ Interoperability focus: Using public blockchains and LayerZero positions Wyoming as a lab for global digital payments, testing how stablecoins move across networks.

✅ Public benefit: Interest earnings will fund local schools, showing how stablecoins can create direct social value.

Deobanks: Stablecoins Fueling a New Kind of Institution

Stablecoins are powering a new wave in the financial ecosystem: deobanks, or decentralized banks. Unlike traditional banks that rely on centralized infrastructure and fiat, these platforms use stablecoins like USDC on public blockchains to offer services like digital accounts, transfers, and even microloans.

The magic lies in smart contracts, which replace intermediaries with automated rules, enabling fast and transparent transactions. In regions with limited financial access, deobanks are testing ways to connect people to global commerce using stablecoins.

It’s a powerful example of how these assets can extend the reach of financial solutions, complementing existing structures.

When we talk about deobanks, we’re talking about:

✅ Versatile use cases: Stablecoins in deobanks support everything from daily payments to microloans, showcasing their flexibility in addressing diverse needs.

✅ Projected growth: Analysts expect the stablecoin market to surpass $400 billion by 2025, and deobanks could drive this expansion by onboarding new users.

✅ Strategic complement: These platforms open doors for partnerships with traditional finance, combining blockchain agility with institutional trust.

Binance to Delist Non-MiCA Compliant Stablecoins

On March 3, Binance announced a major change for users in the European Economic Area (EEA): starting March 31, 2025, trading pairs involving non-MiCA-compliant stablecoins — including USDT, FDUSD, TUSD, USDP, DAI, AEUR, XUSD, and PAXG — will be delisted.

The decision follows the EU's MiCA guidelines for regulating stablecoins, keeping only pairs like USDC and EURI, which comply with the new rules. Until the deadline, EEA users can trade as usual. After that, Binance will automatically convert balances and margin positions to USDC, and cancel any open orders. Custody of these assets will still be allowed, and conversions to regulated stablecoins or fiat will remain available.

This marks a major shift in the global stablecoin landscape. In fact, this topic has been discussed here before and represents the first significant blow to USDT in favor of USDC, creating a new "power vacuum" in Europe.

In short, this move means:

✅ Compliance focus: Prioritizing stablecoins like USDC and EURI highlights the competitive edge of issuers who invested in regulation from the start.

✅ Global pressure: MiCA may prompt similar requirements beyond Europe, forcing non-compliant stablecoins to adapt or lose relevance.

✅ Liquidity shift: Forced conversion to USDC could become a strategic advantage, making it the dominant stablecoin in Europe and establishing a new market standard in the EEA.

A Week in Argentina

As mentioned in previous editions, last week marked a deep immersion for Lumx in Buenos Aires, where we took part in a series of high-impact events. All of this happened during Merge Buenos Aires, a gathering that brought together much of the crypto ecosystem in the Argentine capital to explore the present and future of digital assets in Latin America.

It’s hard to condense such a rich week into a few words, but here are the key insights we gathered and discussed — to give you a sense of what it was all about:

• The LATAM reality: Merge was designed to bridge the ecosystems of Europe and Latin America. This was reflected in the presence of major international players and the opportunity to showcase our regional strengths, challenges, and characteristics. In return, we gained valuable insights, especially on the regulatory front, where Europe is further ahead.

• Institutional presence: Unlike many events where the native crypto community dominates, Merge had a more balanced composition. Web3 protocols and companies shared the stage with traditional market players — including banks, fintechs, and institutional representatives from Argentina — adding a more corporate and strategic tone to the conversations.

• Quality over quantity: The event’s curation stood out. With a lean agenda focused on meaningful content, Merge featured big names like the Argentine Fintech Chamber, Fabio Araújo (from Brazil’s Central Bank), and teams from Metamask Card, Arbitrum, Circle, and others. Side-events maintained the same high bar — diverse but focused, and always with valuable networking opportunities.

• Real-world topics: While many international events still dwell on theory and abstract visions, Merge showcased a more hands-on ecosystem. Panels centered on live on-chain use cases, market data, and real-world experiences. The spotlight was on builders, real solutions, and learnings from those operating daily.

• Key themes: Among the many topics discussed, three stood out: payments and stablecoins, institutional adoption of crypto, and regulation. These themes dominated most discussions and will likely remain hot topics in future industry gatherings.

A special highlight was our own Stable Connect side-event — hosted by Lumx in partnership with Sphere, Arex Activos Digitales, Utila, and Sumsub. The massive turnout and high-level exchanges confirmed the region’s growing interest in stablecoins.

This week was a milestone in our journey — and we hope it’s just the first of many.

Stable News will keep following the industry’s most important milestones. From regulatory advances in Australia to institutional tests in Wyoming, to new models like deobanks and Europe’s regulatory impact, one thing is clear: stablecoins are becoming a core layer of the new global financial infrastructure.

Thanks for reading. See you in the next edition!