Skip to main content

Pasca MiCA Stablecoins Continue to Seek Relevance, While USDT is Safe

Updated

Pasca MiCA Stablecoins Continue to Seek Relevance, While USDT is Safe.jpg

Bittime - Post MiCA stablecoin continues to search for relevance, while USDT is safe. At least the widespread news about Kraken planning to delete USDT has been denied.

However, the condition of post-MiCA stablecoins is still looking for relevance before it falls on December 30th.

Bittime Lucky Draw

Kraken Clarifies on USDT Removal

Cryptocurrency exchange Kraken assured users that it has no plans to delist stablecoin Tether (USDT) in Europe and will continue to comply with all legal requirements. 

This announcement came after widespread reports in the public that USDT would be removed from the exchange.

Also Read: Kraken Plans to Remove USDT Tether from the European Union Market

Currently, stablecoins appear to be safe as the regulations under MiCA that apply to them will come into effect on June 30. 

However, regulations for crypto asset service providers will take effect six months later, namely on December 30.

Check Today's Crypto Market:

Kraken Actively Examines Post-MiCA Stablecoins

Mark Greenberg, Head of Global Growth and Asset Management at Kraken, responded to reports about the possible removal of USDT from European markets. 

Greenberg stated that Kraken is exploring all options to continue offering USDT in accordance with the upcoming regulations.

The European Union will implement the Crypto Asset Markets Regulation (MiCA) later this year, with a focus on stablecoins. 

Greenberg emphasized that Kraken will comply with all legal requirements, including those the company may not agree to. 

He also stated that the rules are not final and that Kraken is working to ensure that European customers can still buy, sell and trade stablecoins.

Also Read: USDT Stablecoin Officially Delisted from OKEx, Here's the Reason!

In a Bloomberg article dated May 17, it was reported that Kraken was reviewing its plans to comply with the MiCA framework. 

Marcus Hughes, Head of Global Regulatory Strategy at Kraken, said that Kraken is considering all possibilities, including the possibility of not being able to maintain the listing of a token like USDT. 

Kraken is actively reviewing the situation and will make a decision once its position is clearer.

Tether's Response to Kraken Compliance

In response to Kraken's statement, Tether expressed its hope that the exchange would focus on Euro liquidity for European customers while maintaining USDT as a solution for on-ramps and off-ramps . 

Meanwhile, Tether CEO Paolo Ardoino expressed his concerns regarding several aspects of MiCA requirements. He also confirmed that the company is in discussions with European regulators. 

Previously, Ardoino told The Big Whale that Tether had no plans to comply with MiCA rules in the medium term.

Bittime welcome gift

Cryptocurrency Landscape Amid Regulatory Changes in Europe

One of Kraken's main competitors, OKEx, delisted USDT in Europe in March. Binance announced similar plans in September, citing the need to comply with MiCA, but has yet to implement the move.

In April, Kraken discontinued support for its privacy token Monero (XMR) for customers in Belgium and Ireland.

Despite regulatory challenges, Kraken continues to expand its services in Europe. The exchange was recently registered as a virtual asset service provider in Spain and the Netherlands, as well as obtaining an electronic money institution license in Ireland.

Also Read How to Buy Crypto:

MiCA and the Reality of European Stablecoins

Although many may think otherwise, MiCA does not actually introduce new regulations for fiat-backed stablecoins. 

The law further emphasizes that issuers must be regulated as electronic money institutions (EMI). 

Many stablecoins currently available in Europe are already illegal because they are unlicensed and not regulated as electronic money in accordance with existing EU legislation.

MiCA stated that starting in July, issuers of fiat stablecoins will have to comply with the electronic money directive (EMD). Only EMIs and credit institutions can legally issue fiat stablecoins in the European Economic Area. 

Currently, several companies such as Monerium, Membrane, and Quantoz Payments issue EMD-compliant on-chain fiat stablecoins. However, several other companies, including Circle, are seeking to obtain an EMI license.

Despite these regulations, some stablecoin issuers choose to ignore EU regulations and offer products without appropriate authorization. This approach may be successful in gaining market share, but it ignores European regulations. 

Check Crypto Prices Today:

The effectiveness of monitoring and enforcement of EU regulations is in question as non-compliant issuers operating illegally may face permits in the future. 

This lack of enforcement harms European companies that comply with the rules and threatens consumer safety, as well as creating unfair competition with issuers from the United States who take a more aggressive approach.

How to Buy Crypto on Bittime

How to Buy Banner

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

 

Also Read:

Runes: The Crypto Meteorite That Crossed Billions of Dollars in an Instant!

MoonBag Presale Released, Can It Compete with Dogecoin and Baby Dogecoin?

AEVO Staking Airdrop: There is a Benefit Classification. Check Complete Details Here

Solana DEX Transactions Outperform Other Blockchains with 210 Million Transactions!

 

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.

Related to

Comments

0 comments

Please sign in to leave a comment.