Cryptocurrency exchange Bitstamp prepares to fully implement European markets regulation

Cryptocurrency exchange Bitstamp is preparing to fully implement European Crypto Asset Markets (MiCA) regulations by delisting its euro-pegged stablecoin, Euro Tether (EURT).

Bitstamp, one of the first exchanges to list Tether’s euro-denominated stablecoin Euro Tether in November 2021, will delist EURT before the end of June, according to an official announcement on June 26.

The company said the delisting is part of Bitstamp’s efforts to comply with MiCA which will take effect on June 30.

The European cordon falls

Launched in 2021, Euro Tether is a stablecoin issued by Tether, the company that operates the US dollar-pegged stablecoin Tether (USDT), the largest stablecoin by market capitalization at over $110 billion.

EURT’s market cap is much lower than USDT, which is worth around $33 million at the time of writing, according to CoinGecko. The stablecoin has seen a significant decline in market capitalization since 2022 and 2023 after peaking at around $236 million in February 2022.

Euro Tether (EURT) market capitalization chart. Source: CoinGekko

Bitstamp calls for uniform regulation of cryptocurrencies in Europe

According to James Sullivan, Bitstamp UK Managing Director, the exchange supports MiCA’s mission to standardize cryptocurrency regulation across the EU.

“We have always advocated for a proportionate response to regulation that protects consumers while enabling the continued 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 desired changes. We communicate directly with the small percentage of our clients whose mixed assets are affected.

Currencies not denominated in euros are not affected

Bitget’s recent restrictions on stablecoins will not affect non-Euro stablecoins.

“Electronic money tokens, or EMT, which are not denominated in euros and are already available on exchanges but are not subject to MiCA regulation, will not be delisted,” Bitstamp noted. However, the availability of these codes will be limited to “certain products” for European customers.

about: Binance prepares for MiCA rules, updates its stablecoin strategy

“Bitstamp will not list any new EMTs that do not meet the MiCA requirements and will not engage in any commercialization of the same,” the exchange said. In addition to EURT, Bitsamp supports trading USDT and Circle’s stablecoin USDT (USDC), according to CoinGecko data.

Unlike Bitstamp, some exchanges like Uphold have chosen to remove USDT and six other stablecoins from their platforms in accordance with MiCA rules, as announced on June 18.

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

review: Cryptocurrency game rewards not ‘critical’, Farmville creator makes case for betas: Web3 Gamer

Leave a Reply

Your email address will not be published. Required fields are marked *