Crypto exchange Bitstamp delists Tether’s euro stablecoin as MiCA laws kick in

Crypto exchange Bitstamp will delist Tether’s EURT and other stablecoins that do not comply with the European Union’s new laws for crypto assets before the June 30 deadline.

Fiat-backed stablecoins, or e-money tokens, which are not euro-denominated that don’t comply with the Markets in Crypto-Assets rules going live this week will be limited in some products, but not delisted.

The exchange will not list or market new tokens that don’t comply.

“We are communicating directly with the small proportion of our customers whose asset mixes are affected,” James Sullivan, Bitstamp’s UK managing director, said in a release announcing the plans.

The exchange previously told DL News they would delist stablecoins that do not comply with the Markets in Crypto-Assets regulation.

MiCA requires fiat-backed stablecoin issuers to implement safeguarding measures and outlines tougher requirements to back the assets.

These e-money tokens need to be fully backed by liquid reserves.

In April, a Tether spokesperson told DL News that its regulatory experts are “interpreting MiCA’s ‘complexities’” and “working to consider the impact of these provisions.”

Yet when CEO Paolo Ardoino was asked whether the company planned to be regulated in Europe, he said: “Not for the moment.”

Bitstamp, which is set to be acquired by stock-trading app Robinhood, is not the only exchange taking measures ahead of MiCA.

Binance said it would restrict unauthorised stablecoins for EU users in some of its services.

Coinbase has not taken a preemptive strike.

“We will continue to monitor the situation to assess which tokens meet the new MiCA compliance standards when the new rules come in,” a spokesperson told DL News earlier in June.

Crypto platforms like exchanges will need to comply with the rest of MiCA’s provisions and licensing requirements from December 30.

Tether didn’t immediately respond to a request for comment.

Inbar Preiss writes about regulation for DL News. Got a tip? Email her at inbar@dlnews.com.