Cryptocurrency exchange Bitstamp announced it would delist euro-backed stablecoins that do not comply with the new Europe’s Market in Crypto-Assets Regulation(MiCA) guidelines by June 30. Tether’s euro-pegged stablecoin, EURT is on the non-compliance list.
Also read: EU’s MiCA legislation could bolster Euro-backed stablecoins adoption
Bitstamp, the cryptocurrency exchange set to be acquired by Robinhood, announced it will delist the euro-pegged stablecoin Euro Tether before the end of June. The decision is in response to the new MiCA guidelines, which aim to create a unified cryptoasset regulatory framework.
Bitstamp delists EURT
Bitstamp was among the first exchanges to list EURT in 2021. They will now delist the Euro-backed stablecoin at the end of June, per the June 26th announcement. The exchange’s move is in response to regulatory requirements for consumer protection.
Europe’s Market in Crypto-Assets Regulation (MiCA) requires that fiat-backed stablecoin issuers implement the new safeguarding mechanisms to protect consumers without limiting the maturation of cryptocurrencies as assets. The move marks a pivotal moment in the crypto market within the European Union to resolve the numerous regulatory concerns associated with stablecoins, which place consumers at risk of losing their investments without recourse.
📢 We're making some changes to accord with MiCA regulation coming into force on June 30th.
EURT will be delisted, and EMTs will have limited availability to European customers. Our commitment to compliance and security stays strong. Learn more: https://t.co/S4xSlgL0fO
— Bitstamp (@Bitstamp) June 26, 2024
MiCA aims to formulate a unified framework regulating crypto-assets within the EU. The new regulatory rules require fiat-backed stablecoins to implement regulatory measures that ensure full backing by liquid fiat reserves. Bitstamp has announced the delisting of EURT in response to the new rules. This decision aligns with the new MiCA regulations that impose stringent safeguarding measures on fiat-denominated tokens.
Also read: Crypto executive warns MiCA regulation will stifle EU crypto companies competitiveness
James Sullivan, Bitstamp’s managing director in the United Kingdom, stated that Bitstamp is committed to unifying crypto regulation across the EU. According to Sullivan, the decision is a proactive stance aimed at adapting to the new changes in the crypto space while addressing the numerous regulatory concerns.
“We have consistently advocated for proportionate response to regulation which protects consumers while allowing for the ongoing maturation of cryptocurrencies as an asset class.”
James Sullivan, Managing Director, Bitstamp UK
He also stated that the exchange communicated directly to the few customers whose asset mixes were affected to enable a smooth and transparent transition as the exchange implemented the new MiCA rules.
Exchanges drop stablecoins amid new MiCA rules
Bitstamp’s decision to delist the stablecoin was influenced by EURT’s market decline and regulatory pressures. EURT was launched in November 2021, issued by Tether, and immediately joined its popular counterpart’s rank, USDT. The coin peaked in February 2022 with a market cap of $ 236 million and has since experienced a sharp decline. EURT currently has a market cap of $33 million.
Bitstamp’s move to delist EURT is part of a broader trend from various exchanges, such as Binance and Uphold, to implement the new MiCA guidelines. For instance, Binance had already announced restrictions on non-compliant stablecoins for European Union users, while Uphold delisted USDT and six other euro-backed stablecoins.
Cryptopolitan reporting by Collins J. Okoth
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