Cryptocurrency exchange Bitstamp has announced the impending delisting of Tether’s Euro Tether (EURT), the euro-pegged stablecoin, in compliance with the Markets in Crypto-Assets Regulation (MiCA) set to take full effect on June 30, 2024.
Bitstamp, which initially listed Euro Tether in November 2021, cited MiCA regulations as the primary reason for removing the stablecoin from its platform. The move underscores Bitstamp’s commitment to adhering to evolving regulatory frameworks governing cryptocurrencies across the European Union.
Compliance with MiCA Regulations
James Sullivan, Bitstamp’s managing director for the United Kingdom, expressed support for MiCA’s objective of standardizing crypto regulations across the EU. He emphasized Bitstamp’s dedication to consumer protection and the growth of cryptocurrencies as an asset class.
“We have consistently advocated for a balanced regulatory approach that safeguards consumers while fostering the development of cryptocurrencies,”
Sullivan stated, highlighting Bitstamp’s preparedness to adapt to regulatory changes.
Impact on Euro Tether and Market Dynamics
Euro Tether, issued by Tether alongside its US dollar-pegged counterpart USD Tether, has experienced a notable decline in market capitalisation, currently valued at approximately $33 million. This downturn follows a peak of around $236 million in February 2022, reflecting broader market adjustments and regulatory pressures.
Euro Tether (EURT) market capitalization chart. Source: CoinGecko
Despite the delisting of Euro Tether, Bitstamp will continue to support trading in other stablecoins such as USDT (US Dollar Tether) and USDC (USD Coin) from Circle. These stablecoins remain unaffected by MiCA regulations due to their non-euro denomination.
Industry Response and Future Outlook
In contrast to Bitstamp’s approach, other exchanges like Uphold have also announced delistings of stablecoins in compliance with MiCA rules, reflecting varying responses within the industry. Tether CEO Paolo Ardoino previously expressed reservations about MiCA regulations, stating the company’s reluctance to operate under its framework.
Bitstamp’s decision to delist Euro Tether underscores the evolving regulatory landscape for cryptocurrencies in Europe. As MiCA regulations come into force, exchanges are navigating compliance challenges while striving to maintain operational integrity and market accessibility.
In summary, Bitstamp’s proactive measures reflect broader efforts within the crypto industry to align with regulatory standards, shaping its future trajectory amidst regulatory developments in Europe.
