As a seasoned crypto investor with a decade of experience under my belt, I’ve seen my fair share of market turbulence and regulatory changes. The upcoming MiCA regulations across the European Union have certainly piqued my interest.
By the end of this year, the long-anticipated regulations for Cryptocurrency Asset Markets (MiCA) will take effect throughout the European Union. Recently, crypto exchange Coinbase announced that it plans to remove all unauthorized stablecoins from its platform by December of this year. This move could potentially deal a significant setback to prominent market players such as Tether, the company behind USDT.
Beginning on June 30th this year, regulations for stablecoin issuers such as Tether took effect, requiring them to have e-money authorization in at least one European Union (EU) member state. By the end of this year, on December 31st, the MiCA guidelines will apply to all crypto exchanges and businesses operating within the EU bloc. A Coinbase representative told Bloomberg on Friday that:
To ensure our adherence to regulations, we plan to limit our service offerings for European Economic Area (EEA) users involving any stablecoins that fail to comply with MiCA standards by December 30, 2024.
Beginning in November, the cryptocurrency exchange Coinbase plans to introduce features for its European users. This includes swapping their stablecoins into compliant alternatives within the EU, like Circle’s US Dollar Coin (USDC), starting next month.
A number of businesses such as Robinhood Markets Inc. and Revolut Ltd., are considering launching their own versions of stablecoins, hoping to rival Tether, the current market leader in this field. Tether, with a total of $120 billion in USDT under management, has not yet been given permission to operate within Europe.
Currently, platforms like OKX, Bitstamp, and Uphold are making moves to restrict usage of Tether’s stablecoins within Europe, as the comprehensive implementation of the Markets in Crypto-Assets (MiCA) regulations approaches.
Coinbase, Binance Prepare for MiCA Rules
Crypto platforms such as Binance are making preparations to align with the MiCA regulations, which are expected to take effect by the end of this year. As early as August, Binance had listed a stablecoin, Eurite (EURI), that is regulated under MiCA and backed by the Euro.
To mark the addition of EURI to our platform, we’ve introduced a special offer: zero-cost trades for Eurite stablecoin pairs! This move aims to boost user interaction and improve overall liquidity here.
Over the past month, I’ve been immersed in the preparatory work for the MiCA regulations, reflecting the Central Bank of Ireland’s dedication to this upcoming regulatory framework. Notably, blockchain technology has caught my attention as a game-changer in the realm of modern financial services. It boasts a profound influence across numerous sectors, from investment product tokenization and enhanced post-trade infrastructure, to fostering increased interoperability.
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2024-10-04 18:12