Regulation
Crypto exchange Bitstamp removes Euro stablecoin from Tether as MiCA laws take effect – DL News
- Bitstamp will remove non-compliant Euro-backed stablecoins.
- The exchange will limit other stablecoins.
- European Union rules on stablecoins will come into force on June 30.
Crypto exchange Bitstamp will remove EURT from Tether and other stablecoins that do not comply with new European Union laws on crypto assets before the June 30 deadline.
Fiat-backed stablecoins, or e-money tokens, which are not denominated in euros and do not comply with crypto-asset markets rules that went live this week, will be limited in some products, but not removed.
The exchange will not list or market new non-compliant tokens.
“We are communicating directly with the small proportion of our customers whose asset allocation is affected,” James Sullivan, Bitstamp’s UK managing director, said in a statement announcing the plans.
The exchange previously said DL News they would delist stablecoins that do not comply with the regulation of crypto-asset markets.
MiCA requires issuers of trust-backed stablecoins to implement safeguards and sets stricter requirements for securing assets.
These e-money tokens must be fully backed by liquidity reserves.
In April, a Tether spokesperson said DL News that its regulatory experts “interpret the ‘complexities’ of MiCA” and “work to consider the impact of these provisions.”
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Yet when CEO Paolo Ardoino was request If the company was considering being regulated in Europe, he said, “Not at this time.”
Bitstamp, which is defined as acquired by stock market app Robinhood, is not the only exchange to take action ahead of MiCA.
Binance said this would restrict unauthorized stablecoins for EU users in some of its services.
Coinbase did not take a preemptive strike.
“We will continue to monitor the situation to assess which tokens meet the new MiCA compliance standards when the new rules come in,” a spokesperson said. DL News earlier in June.
Crypto platforms such as exchanges will need to comply with the rest of MiCA’s provisions and licensing requirements from December 30.
Tether did not immediately respond to a request for comment.
Inbar Preiss writes about regulation for DL News. Got a tip? Email him at inbar@dlnews.com.