Bitstamp Tightens Reins: Delisting Non-Compliant Stablecoins

In a move reflecting the tightening regulatory landscape across Europe, crypto exchange Bitstamp has announced it will delist Tether’s EURT and other stablecoins that fail to comply with the European Union’s forthcoming crypto regulations before the looming June 30 deadline.

The new regulation, known as the Markets in Crypto-Assets (MiCA), is set to redefine the operational framework for crypto assets within the EU. According to Bitstamp’s UK managing director, James Sullivan, the exchange will not only delist non-compliant stablecoins but also limit the availability of certain products, albeit without completely removing them if they are not euro-denominated.

“We are communicating directly with the small proportion of our customers whose asset mixes are affected,” Sullivan stated, highlighting the exchange’s proactive approach to compliance and customer communication.

MiCA introduces stringent requirements for fiat-backed stablecoins, often referred to as e-money tokens. These tokens are now required to be fully backed by liquid reserves, among other safeguarding measures aimed at enhancing the stability and reliability of digital assets.

In a conversation with DL News in April, a Tether spokesperson acknowledged the complexities of MiCA, noting that their regulatory experts were diligently working to align with the new provisions. However, when probed about plans to regulate within Europe, Tether’s CEO Paolo Ardoino indicated that such moves were not imminent.

Bitstamp’s compliance efforts come as part of broader industry shifts, with other major players like Binance also adjusting their offerings for EU users in response to MiCA. Binance has opted to restrict unauthorised stablecoins in some services, showcasing a varied approach to the impending regulations.

Conversely, Coinbase has taken a more measured stance, opting to wait and assess which tokens will meet the MiCA compliance standards post-implementation. “We will continue to monitor the situation,” stated a Coinbase spokesperson earlier this month.

As the December 30 deadline for full compliance with MiCA’s provisions and licensing requirements approaches, crypto platforms are increasingly pressured to align their operations with the new standards, heralding significant changes in how digital assets are managed and traded within the EU.