June 27, 2024 at 12:13 GMTModified date: June 27, 2024 at 12:13 GMT
June 27, 2024 at 12:13 GMT

Bitstamp to remove EURT, aligning with new EU crypto laws

Other exchanges, such as Uphold, are also delisting multiple stablecoins, including $USDT, in response to the MiCA rules.

Bitstamp to remove EURT, aligning with new EU crypto laws

Bitstamp, known to be the world’s oldest cryptocurrency exchange, is making big changes to follow the upcoming Markets in Crypto-Assets Regulation (MiCA).

This new regulation is set to be enforced on 30 June across the European Union (EU). In line with the same, Bitstamp has confirmed that will remove the EUR-denominated stablecoin $EURT from its platform before the deadline.

Tether’s Euro-pegged stablecoin $EURT was first added on Bitstamp in November 2021. It will soon be delisted to comply with MiCA, which aim to create a consistent legal framework for crypto-assets within the region

Ever since the stablecoin’s launch in 2021, $EURT’s market value has seen a significant drop. Data from CoinMarketCap shows that EURT’s market cap is currently around $37 million. This is a steep decline from its $236 million high in February 2022.

Other exchanges, such as Uphold, are also delisting multiple stablecoins, including $USDT, in response to the MiCA rules. However, Tether CEO, Paolo Ardoino, has expressed dissatisfaction with the European regulation. He has also stated that Tether does not intend to comply with MiCA.

Aligning with MiCA standards

The recent developments revealed that Bitstamp is proactively ensuring its regulatory compliance with the MiCA standards. 

Its UK Managing Director, James Sullivan, emphasised that the exchange supports MiCA’s objective to harmonise crypto regulations across the EU region. 

“We welcome MiCA’s implementation to make crypto regulation uniform across the European Union. As the world’s longest-running cryptocurrency exchange, we have consistently advocated for proportionate responses to regulation that protect consumers while allowing for the ongoing maturation of cryptocurrencies as an asset class”, said Sullivan.

Bitstamp is now directly in communication with affected customers to minimise the impact of the delisting. “Our commitment to compliance and security means we are in a strong position to adapt to these welcome changes”, he added.

The exchange has also clarified that non-euro-denominated stablecoins will not be affected, but these Electronic Money Tokens (EMTs) will be limited to certain products for European customers. No new EMTs will be listed on Bitstamp unless they meet MiCA standards.

Understanding MiCA

MiCA, or Markets in Crypto-Assets is an upcoming regulation that would provide a legal framework for cryptocurrencies, Initial Coin Offerings (ICOs), and other digital asset services in the European Union. 

It excludes decentralised finance (DeFi) and non-fungible tokens (NFTs) but aims to set clear rules for crypto-assets and related services in the region. 

The European Parliament approved MiCA in 2023, after the collapse of FTX and its $8 billion fraud. These new rules aim to prevent such events and protect investors.

MiCA will be enforced in two stages in 2024. In June, it will cover stablecoin issuers, asset-referenced tokens, and e-money tokens. By December, it will include other crypto asset service providers, highlighting their critical role in the new regulatory framework.

The EU will then be the first to implement such comprehensive crypto regulations. The new rules are being heralded as a big step toward creating a stable and secure crypto market, protecting investors, and enhancing financial stability.

Back in October, Spain announced that it will implement the EU’s crypto law six months ahead of the scheduled date.

While the general deadline for all 27 EU member states to adopt MiCA is set for July 2026, Spain is aiming for a December 2025 deadline. 

According to a press release, this decision was made “to create a regulatory framework and stable supervisor that provides legal certainty and protects investors in relation to the provision of crypto asset services”.