Markets
Cryptocurrency exchange Bitstamp delists Tether’s euro stablecoin as MiCA laws take effect – DL News
- Bitstamp will remove unsupported euro-backed stablecoins.
- The exchange will limit other stablecoins.
- European Union rules on stablecoins will come into force on June 30.
Cryptocurrency exchange Bitstamp will delist Tether’s EURT and other stablecoins that do not comply with new European Union laws for crypto assets before the June 30 deadline.
Fiat-backed stablecoins, or electronic money tokens, which are not denominated in euros and do not comply with Crypto Markets rules that come into effect this week, will be limited in some products but will not be delisted.
The exchange will not list or trade new non-compliant tokens.
“We are communicating directly with the small proportion of our customers whose asset mix is affected,” said James Sullivan, UK managing director at Bitstamp, in a statement announcing the plans.
The exchange previously counted DL News they would delist stablecoins that do not comply with Crypto Markets regulation.
MiCA requires issuers of fiat-backed stablecoins to implement safeguard measures and outlines stricter requirements to back assets.
These electronic money tokens need to be fully backed by liquid reserves.
In April, a Tether spokesperson said DL News that its regulatory experts are “interpreting the ‘complexities’ of MiCA” and “working to consider the impact of these provisions.”
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However, when CEO Paolo Ardoino was asked whether the company planned to be regulated in Europe, he said, “Not yet.”
Bitstamp, which is set to be acquired by stock trading app Robinhood is not the only exchange taking action ahead of MiCA.
Binance he said would restrict unauthorized stablecoins for EU users on 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 into force,” said a spokesperson. DL News in early June.
Crypto platforms such as exchanges will need to comply with the rest of MiCA’s licensing provisions and requirements from December 30th.
Tether did not immediately respond to a request for comment.
Inbar Preiss writes about regulation for DL News. Have a tip? Email her at inbar@dlnews.com.