- Bitstamp delists Euro Tether (EURT) to comply with EU’s new MiCA regulations.
- MiCA requires stablecoins to be fully backed by liquid reserves for consumer protection.
- Non-euro stablecoins remain available on Bitstamp but limited to certain products for EU customers.
As the European Union’s Markets in Crypto-Assets (MiCA) regulation comes into full effect, the cryptocurrency exchange Bitstamp that is set to be acquired by Robinhood, has announced it will delist Tether’s euro-pegged stablecoin, Euro Tether (EURT).
This move, effective by the end of June, underscores Bitstamp’s commitment to regulatory compliance and marks a significant moment in the crypto market’s evolution within the EU.
MiCA’s impact on stablecoins
The MiCA regulation, set to go live on June 30, 2024, aims to create a unified regulatory framework for crypto assets across the European Union.
This comprehensive regulation requires fiat-backed stablecoin issuers to implement robust safeguarding measures and ensure full backing by liquid reserves. By adhering to these standards, the EU hopes to protect consumers and promote the maturation of cryptocurrencies as an asset class.
Bitstamp, a prominent player in the crypto exchange market, has responded to these new regulations by delisting EURT, a stablecoin they were one of the first to list back in November 2021. The delisting decision aligns with the need to comply with MiCA, which imposes stricter requirements on stablecoins, especially those denominated in euros.
James Sullivan, Bitstamp’s UK managing director, emphasized the exchange’s proactive stance on regulation, noting that Bitstamp supports MiCA’s mission to make crypto regulation uniform across the EU. Sullivan stated that the exchange’s commitment to compliance and security and that they are in a strong position to adapt to the changes. He highlighted the exchange’s efforts to communicate directly with affected customers.
What does the EURT delisting by Bitstamp mean?
Euro Tether (EURT) was launched by Tether in 2021, joining the ranks of its more prominent counterpart, USD Tether (USDT).
However, EURT’s market capitalization has significantly declined from its peak of $236 million in February 2022 to approximately $33 million at present.
Reportedly, the market cap decline coupled with regulatory pressures are the main factors behind…