Regulation
Crypto Exchange Bitstamp Removes Tether Euro Stablecoin as MiCA Laws Take Effect – DL News
- Bitstamp will delist non-compliant euro-backed stablecoins.
- The exchange will limit other stablecoins.
- The European Union rules on stablecoins will come into force on June 30th.
Cryptocurrency exchange Bitstamp will remove Tether EURT and other stablecoins that do not comply with new European Union cryptocurrency laws ahead of the June 30 deadline.
Fiat-backed stablecoins, or e-money tokens, that are not denominated in euros and do not comply with the Markets in Crypto-Assets rules that come into force this week will be restricted in some products, but not eliminated.
The exchange will not list or market new non-compliant tokens.
“We are communicating directly with the small percentage of our customers whose asset mixes are affected,” James Sullivan, managing director of Bitstamp in the UK, said in a statement announcing the plans.
The exchange earlier said DL News they would remove stablecoins that do not comply with cryptocurrency market regulations.
MiCA requires issuers of fiat-backed stablecoins to implement safeguards and outlines stricter requirements to back the assets.
These e-money tokens must be fully backed by liquid reserves.
A Tether spokesperson said this in April DL News that its regulatory experts are “interpreting the “complexities” of MiCA” and “working to consider the impact of these provisions.”
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Yet when CEO Paolo Ardoino was asked if the company intends to be regulated in Europe, he said: “Not at the moment.”
Bitstamp, which is set to be acquired from stock trading app Robinhood, it’s not the only exchange taking action ahead of MiCA.
Binance She said would limit the use of unauthorized stablecoins for EU users in some of its services.
Coinbase did not go on a pre-emptive strike.
“We will continue to monitor the situation to assess which tokens meet the new MiCA compliance standards when the new rules come into effect,” a spokesperson said DL News at the beginning of June.
Crypto platforms such as exchanges will have to comply with the rest of the provisions and licensing requirements of MiCA starting December 30th.
Tether did not immediately respond to a request for comment.
Inbar Preiss writes about regulation for DL News. Do you have advice? Email her at inbar@dlnews.com.