Bitstamp is one of the first crypto trading platforms to list euro-stablecoins issued by the Tether project. Tether, the issuer of USDT stablecoin, launched a euro-backed stablecoin called EURT in November 2021.
Introduction to MiCA
However, the legislators in the European Union passed a comprehensive cryptocurrency regulatory framework called Markets in Crypto-Assets (MiCA).
This regulatory framework is set to go into effect in the EU region in 2024. Therefore, all the exchange platforms operating in the jurisdiction are implementing internal changes as a way to implement regulatory reforms.
Bitstamp is also an operational exchange in Europe. The exchange has stated that the decision as one of the measures to implement regulatory compliance based on MiCA.
As of 26th June 2024, Bitstamp was among the first platforms to list EURT in November 2021. However, the platform has decided to delist EURT before the conclusion of the official notification issued on 26th June.
The exchange platform has noticed that the delisting will take effect on 30th June 2024. EURT stablecoin was launched in 2021 and issued by Tether. The USDT stablecoin also issued and managed by Tether is the biggest stablecoin project in terms of market cap of around $110 billion.
BitStamp to Follow MiCA Laws
The market cap of EURT is smaller in comparison to Tether standing at $33 million as per CoinGecko analytics. The cap of this stablecoin started to dwindle during 2022 and 2023 after reaching $236 million in February 2022.
James Sullivan, the managing director of Bitstamp UK has noticed that the trading platform is aligned with MICA regulations and resonates with its efforts to implement a streamlined regulatory framework across the EU nations.
He further added that the firm has been reiterated the proportionate response to regulations as a way to protect investors and make room for the development of cryptocurrencies as assets. According to the trading platform, the firm is also working towards implementing compliant administrative system and security measures.
The firm further stated that the platform is placed in a strong position to welcome the new changes. On this account, the platform has established direct communication channels with its user base to talk about the affected assets.
The article has also indicated that any stablecoins that are not backed by euro are to remain unaffected with on Bitget. This category is inclusive of Electronic Money Tokens (EMTs) that are not denominated in the form of euros and are listed on the trading platform.
However, EMTs does not subject changes under the MiCA regulations. Nevertheless, the structural changes on Bitget as per the regulatory framework will limit EMTs accessibility to specified products for European investors.
Bitstamp Still Supports USDT
The exchange platform has also informed media that Bitstamp will not list new tokens that do not meet the requirements set by MiCA regulations. Furthermore, the platform will also refrain from participating in any advertisements that do not meet this criterion.
While Bitstamp is delisting EURT, it will continue to support USDT and USDC stablecoins as per CoinGecko statistics. Meanwhile, another exchange called Uphold announced desilting of 7 stablecoins including USDT on 18th June based on MiCA laws.
Tether CEO Paolo Ardonio has also issued a statement on the matter of MiCA regulations. The executive took a negative stance on the European regulatory framework that was passed in May.
He claimed that the stablecoin issuer was not aiming to operate as a regulated entity as per MiCA regulations. A venture capital firm, Paradigm has reiterated the stance of European regulators on the matter of digital asset regulations.
As per a Cointelegraph article, the VC recently send an written document addressed to European Securities and Markets Authority (ESMA) on the enacting prevention of stringent enforcement action. The document was alluding to the first section of MiCA that is set to go into effect on 30th June regarding Maximum Extractable Value (MEV).
The document withstands that ESMA has wrongly estimated MEV to emulate the same violations and illegal practices to hinder digital asset industry as traditional and regulated financial sector.
