Regulation
Euro Tether delisted from Bitstamp due to MiCA
Bitstamp, a leading cryptocurrency exchange, is preparing for the imminent full implementation of the European Markets in Crypto-Assets (MiCA) Regulation by announcing its decision to delist Euro Tether (EURT), a stable currency linked to the euro.
This strategic move comes ahead of MiCA regulations coming into effect on June 30, underscoring Bitstamp’s commitment to fully comply with emerging European regulations.
The History and Decline of Euro Tether
Introduced to the market in November 2021, Euro Tether was one of the first Euro-denominated stablecoins available on Bitstamp.
Despite its early adoption, the EURT has experienced a drastic drop in market capitalization over the past few years, going from a peak of around $236 million in February 2022 to a current valuation of around $33 million, according to CoinGecko data.
This drop in valuation is notable given that Tether, the issuer of EURT, also operates USD Tether (USDT), which remains the largest stablecoin by market value, at over $110 billion.
Visualization of the market capitalization of Euro Tether (EURT). Source: CoinGecko
James Sullivan, Bitstamp UK Managing Director, explained the exchange’s proactive approach to MiCA compliance.
He said Bitstamp has always advocated for a balanced regulatory response that both protects consumers and promotes the continued development of cryptocurrencies as a viable asset class.
Sullivan highlighted that Bitstamp’s strong foundation in compliance and security positions it well to positively adapt to regulatory changes, ensuring minimal disruption to its customers.
He noted that the delisting of EURT would only directly affect a small percentage of their customer base, whose asset portfolios include the euro-pegged stablecoin.
Managing other electronic money tokens (EMT)
In addition to responding to the delisting of EURT, Bitstamp provided clarification on its handling of other non-euro electronic money tokens (EMT).
These EMTs, already traded on the platform but not covered by MiCA regulations, will continue to be available, although with some usage restrictions specific to European customers.
Bitstamp also stated that it would not list any new EMTs that do not meet MiCA standards and would not engage in any promotional activities for these tokens.
Conversely, other cryptocurrency exchanges have adopted more extensive measures in response to the MiCA regulations. For example, Uphold, another exchange, chose to delist USDT along with six other stablecoins earlier on June 18, thereby aligning its operations with the new regulatory framework.
Separately, Tether CEO Paolo Ardoino has publicly criticized European regulations, indicating in May that the company had no plans to comply with MiCA guidelines.
Binance Adjustments for Compliance
Meanwhile, Binance, another titan in the cryptocurrency exchange space, is also making adjustments to ensure compliance with MiCA.
The exchange has started informing its European Economic Area users about upcoming changes to its service, specifically the categorization of stablecoins into “regulated” and “unpermitted” based on their adherence to the new rules.
Binance aims to smoothly transition its users from unauthorized to regulated stablecoinsas it anticipates a growing list of MiCA-compliant stablecoins entering the market.
Binance plans to employ a “sell only” strategy for unauthorized stablecoins through its Binance Convert feature, a measure designed to phase out non-compliant tokens.
For now, only a few stablecoins meet the requirements set out by MiCA, but Binance is prepared to navigate this regulatory landscape by making it easier for users to transition to compliant stablecoins.
These proactive adjustments by major exchanges like Bitstamp and Binance highlight significant changes within the cryptocurrency market as operators align with new regulatory landscapes.
Their efforts aim to foster a safer, more standardized environment for trading crypto assets across Europe, reflecting a broader movement within the fintech sector to embrace regulatory changes that promise to improve data protection. consumers and market stability.