As Europe prepares to fully implement the Markets in Crypto-Assets Regulation (MiCA), cryptocurrency exchange Bitstamp is aligning its operations with the new regulatory framework. In a proactive measure, Bitstamp has announced the delisting of Tether’s euro-pegged stablecoin, EURT, signaling its commitment to compliance.
Bitstamp’s Historical Involvement with EURT
Bitstamp was among the first exchanges to list EURT back in November 2021. However, in response to the impending enforcement of MiCA on June 30, 2024, Bitstamp will remove EURT from its platform by the end of June. This decision underscores the evolving regulatory landscape and its impact on available crypto assets.
EURT, launched by Tether—the entity behind the dominant dollar-pegged stablecoin USDT—has struggled to match the success of its counterpart:
- Market Capitalization: As of the latest data, EURT’s market cap stands at approximately $33 million, a steep decline from its peak of about $236 million in February 2022.
- Comparative Size: In contrast, USDT’s market capitalization exceeds $110 billion, highlighting the vast disparity in adoption and trust between the two stablecoins.
James Sullivan, Bitstamp’s managing director for the United Kingdom, articulated the exchange’s support for MiCA’s goal to standardize crypto regulations across the European Union. He emphasized Bitstamp’s advocacy for balanced regulatory measures that protect consumers while supporting the maturation of cryptocurrencies as an asset class.
Bitstamp’s adherence to MiCA will directly affect only a small proportion of its customers, specifically those dealing in EURT. The exchange is taking steps to ensure these customers are informed and prepared for the upcoming changes.
While EURT will be delisted, Bitstamp clarified its position on other stablecoins:
- Non-Euro Denominated Tokens: Stablecoins not pegged to the euro and already traded on Bitstamp will not be affected by the new regulation, but their availability will be restricted to certain products for European customers.
- Future Listings: Bitstamp will refrain from listing any new Electronic Money Tokens (EMTs) that do not comply with MiCA standards and will avoid marketing such tokens.
Other exchanges are also navigating MiCA’s implications differently. For example, Uphold announced the delisting of USDT and six other stablecoins from its platform earlier in June, adopting a more extensive compliance strategy in response to MiCA.
Tether’s Stance on MiCA
Tether’s CEO, Paolo Ardoino, has voiced criticism of the European regulations, indicating in May 2024 that Tether did not plan to conform to MiCA’s standards. This stance highlights the tension between regulatory bodies and crypto entities over the scope and enforcement of new regulations.
Bitstamp’s decision to delist EURT in compliance with MiCA is indicative of the broader shifts occurring within the cryptocurrency industry as it increasingly intersects with formal regulatory frameworks. As the deadline for MiCA’s implementation approaches, the actions taken by exchanges like Bitstamp will likely set precedents for how crypto markets adapt to regulatory pressures, potentially reshaping the landscape of digital assets in Europe.
| Item | Detail |
|---|---|
| EURT Delisting Date | End of June 2024 |
| MiCA Enforcement Date | June 30, 2024 |
| Impact on Customers | Minor, affecting those with EURT holdings |
| Compliance Strategy | Delisting non-compliant stablecoins |
| Market Cap of EURT | $33 million |
| Peak Market Cap of EURT | $236 million in February 2022 |
Featured image credit: Marco Verch via CCNull