European crypto exchange Bitstamp is set to delist Tether’s euro-pegged stablecoin, EURT, in preparation for the full enforcement of Europe’s Markets in Crypto-Assets Regulation (MiCA).
The delisting is scheduled to occur before the end of June, as announced by Bitstamp on June 26.
Launched in 2021 by Tether, the issuer of the widely used USDT stablecoin, EURT has seen a decline in market capitalization. Currently valued at around $33 million, EURT’s market cap has dropped from its peak of $236 million in February 2022.
Created to satisfy euro-biased crypto enthusiasts, Tether says EURT can provide protection during periods of extreme volatility in the market while improving the risk and return metrics of crypto-investment portfolios.
James Sullivan, Bitstamp’s UK managing director, said “We have consistently advocated for proportionate response to regulation which protects consumers while allowing for the ongoing maturation of cryptocurrencies as an asset class.”
Impact on other stablecoins
Bitstamp’s decision to delist EURT will not affect stablecoins that are not euro-denominated. The exchange clarified that Electronic Money Tokens (EMTs) not covered by MiCA regulations will remain listed but will be available only for certain products for European customers. Additionally, Bitstamp will not list any new EMTs that fail to meet MiCA requirements or engage in marketing them.
Unlike Bitstamp, other exchanges have taken different approaches in response to MiCA. For instance, Uphold announced on June 18 that it would delist USDT and six other stablecoins to comply with MiCA rules. Tether CEO Paolo Ardoino previously criticized the European regulation, stating that the company did not plan to seek regulation under MiCA.
Meanwhile, Binance plans to impose restrictions on the availability of stablecoins in the European Union (EU) that are deemed “unregulated” under the EU’s new Markets in Crypto-Assets Regulation (MiCA). The exchange said could ultimately delist stablecoins from its European platforms by June 30, 2024.
Marina Parthuisot, who serves as the head of legal at Binance France, cited the lack of approved stablecoin projects in the region ahead of the upcoming European Union’s Markets in Crypto Assets (MiCA) regulation. There is no grace period specified for coins already on the market under this regulation, potentially leading to massive delistings.
MiCA was finalized back in June, and it’s set to make the EU the first major jurisdiction with comprehensive cryptocurrency regulations. It will allow exchanges and wallet providers to operate throughout the EU with just one license. However, the implications of this regulation for stablecoins and decentralized projects remain uncertain.
