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Bitstamp drops Tether’s euro stablecoin amid new MiCA rules

News Feed - 2024-06-26 11:06:52

Helen Partz9 hours agoBitstamp drops Tether’s euro stablecoin amid new MiCA rulesBitstamp was one of the first crypto exchanges to list Tether’s euro-pegged stablecoin, EURT, in November 2021.1135 Total views27 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCryptocurrency exchange Bitstamp is preparing for the full enforcement of Europe’s Markets in Crypto-Assets Regulation (MiCA) by delisting Tether’s euro-pegged stablecoin, EURT.


Bitstamp was one of the first exchanges to list EURT in November 2021 but will now delist EURT before the end of June, according to an official announcement on June 26.


The company said the delisting aligns with its efforts to comply with MiCA, which will come into force on June 30.EURT in decline


Launched in 2021, the EURT is issued by Tether, the company operating the U.S. dollar-pegged stablecoin USDT (USDT), which is the largest stablecoin by market value at more than $110 billion.


EURT’s market capitalization is significantly smaller than that of USDT, valued at just around $33 million at the time of writing, according to CoinGecko. The stablecoin has seen a significant decline in terms of market cap since 2022 and 2023 after peaking at around $236 million in February 2022.EURT market capitalization chart. Source: CoinGeckoBitstamp advocates for uniform crypto regulation in Europe


According to James Sullivan, Bitstamp’s managing director for the United Kingdom, the exchange supports MiCA’s mission to make crypto regulation uniform across the European Union.


“We have consistently advocated for proportionate response to regulation which protects consumers while allowing for the ongoing maturation of cryptocurrencies as an asset class,” Sullivan said, adding:“Our commitment to compliance and security means we are in a strong position to adapt to these welcome changes. We are communicating directly with the small proportion of our customers whose asset mixes are affected.”Non euro-denominated coins unaffected


Bitget’s latest stablecoin restriction will not affect stablecoins that are not euro-denominated.


“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,” Bitstamp noted. However, the availability of these tokens will be limited to “certain products” for European customers.


Related:Binance prepares for MiCA rules, updates stablecoin strategy


“Bitstamp will not list any new EMTs that don’t meet MiCA requirements, nor will it engage in any marketing of them,” the exchange said. Other than EURT, Bitsamp supports trading of USDT and Circle’s USD Coin (USDC) stablecoin, according to CoinGecko data.


Unlike Bitstamp, Uphold opted to delist USDT and six other stablecoins from its platform in accordance with MiCA rules, as announced on June 18.


Tether CEO Paolo Ardoino reportedly criticized the European regulation in May 2024, saying that the company did not intend to be regulated under MiCA.


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