Bitstamp, a leading cryptocurrency exchange, has announced its decision to delist Euro Tether (EURT), a stablecoin pegged to the euro, in anticipation of the full enforcement of Europe’s Markets in Crypto-Assets Regulation (MiCA) on June 30. This strategic move underscores Bitstamp’s commitment to full compliance with emerging European regulations.
The History and Decline of Euro Tether
Launched in November 2021, Euro Tether was one of the first euro-denominated stablecoins available on Bitstamp. However, its market capitalization has significantly declined, dropping from approximately $236 million in February 2022 to around $33 million, according to CoinGecko. This is in stark contrast to USD Tether (USDT), another stablecoin issued by Tether, which remains the largest by market value, exceeding $110 billion.
James Sullivan, Bitstamp’s managing director for the United Kingdom, emphasized the exchange’s proactive approach towards MiCA compliance. He highlighted Bitstamp’s strong foundation in compliance and security, which positions it to adapt positively to regulatory changes with minimal disruption to its customers. Sullivan noted that the delisting of EURT would impact only a small percentage of clients holding the euro-pegged stablecoin.
Handling Other Electronic Money Tokens (EMTs)
Bitstamp has also clarified its handling of other Electronic Money Tokens (EMTs) not denominated in euros. These EMTs, which are already trading on the platform and do not fall under MiCA regulation, will remain available with certain usage restrictions for European customers. Bitstamp will not list new EMTs that do not meet MiCA standards nor promote such tokens.
Industry Responses to MiCA Regulation
Other cryptocurrency exchanges have also taken significant measures in response to MiCA regulation. For example, Uphold chose to delist USDT and six other stablecoins on June 18 to align with the new regulatory framework. Tether’s CEO, Paolo Ardoino, has publicly criticized the European regulation and indicated that the company does not intend to conform to MiCA guidelines.
Meanwhile, Binance is making adjustments to ensure compliance with MiCA. The exchange is notifying its European Economic Area users about changes, specifically categorizing stablecoins into “regulated” and “unauthorized” based on their adherence to the new rules. Binance plans to transition users from unauthorized to regulated stablecoins and will employ a “sell-only” strategy for non-compliant tokens through its Binance Convert function.
These proactive adjustments by major exchanges like Bitstamp and Binance highlight significant shifts within the cryptocurrency market as operators align with new regulatory landscapes. Their efforts aim to foster a safer and more standardized environment for crypto asset trading across Europe, reflecting a broader movement within the financial technology sector to embrace regulatory changes that promise to enhance consumer protection and market stability.
Source: coinfomania.com
