Bitstamp to Delist Euro Tether in Compliance with Europe's MiCA Regulations
Summary:
Bitstamp, a cryptocurrency exchange, is set to delist Tether's Euro Tether (EURT) stablecoin to comply with the full enforcement of Europe's Markets in Crypto-Assets Regulation (MiCA) from June 30. The move comes despite Bitstamp being one of the first exchanges to list the Euro-denominated stablecoin in November 2021. James Sullivan, Bitstamp’s UK managing director, expressed support for MiCA’s mission to standardize crypto regulation across the European Union. The latest restriction will not affect non-euro-denominated stablecoins.
The virtual currency exchange, Bitstamp, is readying itself for the full execution of Europe's Markets in Crypto-Assets Regulation (MiCA) by eliminating Tether's Euro-associated stablecoin, the Euro Tether (EURT). Previously, Bitstamp was one of the pioneer exchanges to feature Tether's Euro-related stablecoin, the Euro Tether, in November 2021. However, as per an official statement made on June 26, Bitstamp plans to delist EURT by the end of June in order to comply with the MiCA regulations, which will be effective from June 30.
Initially introduced in 2021, Euro Tether is a type of stablecoin created by Tether, the organization responsible for the US dollar-linked stablecoin USD Tether (USDT) - the most valuable stablecoin with a market worth exceeding $110 billion. The market capital of EURT, however, is far less than that of USDT, approximated at merely around $33 million as per CoinGecko data. This stablecoin has seen a massive drop in its market capital since 2022 and 2023, after hitting a peak of around $236 million in February 2022.
James Sullivan, the UK Management Director for Bitstamp, has stated that the exchange supports MiCA's objective to standardize cryptocurrency regulation across the European Union. Sullivan confirmed that Bitstamp is prepared to adjust to these welcomed changes due to its commitment to compliance and security, while also maintaining consistent advocacy for consumer protection and the continued evolution of cryptocurrencies.
Bitstamp's recent restriction on stablecoins will not impact those not associated with the euro. The exchange clarified that not all Electronic Money Tokens (EMTs), which do not rely on the euro and are presently accessible on the exchange, will be delisted. Although, the availability of such coins for European customers would be limited to certain products.
Looking to adhere to MiCA rules, Bitstamp declared that it will not add any new EMTs that don't comply with MiCA rules nor will it endorse them. Other notable stablecoins supported by Bitstamp apart from EURT include USDT and USDC (USDC). As of CoinGecko's data, unlike Bitstamp, several exchanges such as Uphold have chosen to remove other stablecoins, including USDT.
Tether CEO Paolo Ardoino expressed criticism towards European regulation in May 2024, expressed that the company was not planning to be regulated by MiCA.
Published At
6/26/2024 5:19:52 PM
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