Bitstamp will delist Tether’s euro-pegged stablecoin, Euro Tether (EURT), to with the upcoming Markets in Crypto-Assets Regulation (MiCA) in the European Union, the exchange announced on June 26.
Bitstamp Claims “User Protection” As MiCA About to be in Act
The exchange announced on that EURT will be delisted before the end of June. This action aligns with Bitstamp’s efforts to comply with MiCA.
Euro Tether (EURT), launched in 2021, is a stablecoin issued by Tether, the company behind the U.S. dollar-pegged stablecoin USD Tether (USDT), the largest stablecoin by market value.
EURT’s market capitalization is substantially smaller than USDT’s. At the time of writing, it was valued at around $33 million, down from a peak of approximately $236 million in February 2022.
In addition to EURT’s market cap decline, regulatory pressures are also factors behind Bitstamp’s decision to delist the stablecoin, the delisting is part of a broader trend among exchanges preparing for MiCA’s enforcement.
James Sullivan, Bitstamp’s managing director for the United Kingdom, stated that the exchange supports MiCA’s mission to make crypto regulation uniform across the European Union.
“We have consistently advocated for a proportionate response to regulation which protects consumers while allowing for the ongoing maturation of cryptocurrencies as an asset class,” Sullivan said.
He added that Bitstamp’s commitment to compliance and security places the exchange in a strong position to adapt to these regulatory changes. The exchange communicates directly with customers whose delisting affects asset mixes.
Bitstamp’s restriction on stablecoins will not affect those that are not euro-denominated. Bitstamp noted,
“Electronic Money Tokens, or EMTs, which are not euro-denominated and are already available on the exchange but not within MiCA regulation, will not be delisted,” Sullivan added.
These tokens will be limited to certain products for European customers, however. Bitstamp also clarified that it will not list any new EMTs that don’t meet MiCA requirements, nor will it engage in marketing them. Besides EURT, Bitstamp supports trading of USDT and Circle’s USDC stablecoin.
Unlike Bitstamp, some exchanges, like Uphold, have opted to delist USDT and six other stablecoins from their platforms, following MiCA rules.
MiCA’s Impact on European Cryptocurrency Market and Stablecoins Issuers
On July 1, the highly anticipated Markets in Crypto-Assets Regulation (MiCA) will come into force, bringing huge change to the landscape of stablecoins.#CryptoRegulations #EUhttps://t.co/L9t2WWuKFh
— Cryptonews.com (@cryptonews) June 26, 2024
The MiCA regulation, set to go live on June 30, 2024, will create a unified regulatory framework for crypto assets across the European Union.
The comprehensive regulation requires fiat-backed stablecoin issuers to implement strong safeguarding measures and ensure full backing by liquid reserves. By adhering to these standards, the EU hopes to protect consumers and promote the maturation of cryptocurrencies as an asset class.
The implementation of MiCA represents a key moment for the European cryptocurrency market, particularly stablecoin issuers, as the EU seeks to enhance market stability by enforcing rigorous standards on stablecoin issuers.
Tether’s response to MiCA has been cautious. While the company is evaluating the regulation’s complexities, Tether CEO Paolo Ardoino has expressed reluctance to be regulated under MiCA, indicating a potential reevaluation of the company’s strategy in Europe.
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