Understanding MiCA: A New Rulebook for Crypto in Europe
The European Union (EU) has created new rules called Markets in Crypto-Assets (MiCA) for the world of cryptocurrency. Recently, there was some news about Tether’s USDt (USDT), which is a type of stablecoin. The European Securities and Markets Authority (ESMA) said that MiCA doesn’t stop the keeping and moving of non-compliant stablecoins like USDT[1][4]. This means that even though some exchanges like Binance are removing USDT for European users[3][5], it can still be kept and moved around.
What is MiCA and Why is it Important?
MiCA is like a big book of rules that makes the European cryptocurrency market fair and safe. It wants to protect people, stop bad things like money laundering, and make sure cryptocurrency doesn’t hurt the environment[5]. However, some big players like Tether can’t follow these rules, so they’re not part of MiCA[2].
Who are the Approved Stablecoin Issuers?
Ten companies that make stablecoins have been allowed to join MiCA, like Banking Circle and Circle[2]. This shows that the EU wants companies to follow the rules. But Tether isn’t on this list, which has some people talking about what the EU wants and if it might make the market smaller[2].
What’s Happening with Stablecoins?
Binance, a big exchange, is removing nine stablecoins that don’t follow the rules, including USDT[3][5]. But even though these stablecoins are being removed, Binance will still let people put money in, take money out, and keep these stablecoins[1][3].
The Future of Stablecoins in Europe
The ESMA said that even if you can’t trade non-compliant stablecoins, you can still keep and move them. This means that people can slowly stop using these stablecoins without any big problems right away[1]. But what will happen to Tether and other stablecoins that don’t follow the rules in the long run is still a mystery.
Tether’s Plans Beyond Europe
Since Tether can’t join MiCA, it’s looking for other places to grow, like in energy and sports[2]. This shows that even though there are problems in Europe, there are still lots of opportunities elsewhere.
A New Way to Look at Cryptocurrency Rules
In the end, MiCA is making a big change in how cryptocurrency is watched over in Europe. It wants everyone to follow the rules and protect people. Even though Tether’s USDT might have some problems in Europe, people can still keep and move it. As the world of cryptocurrency keeps changing, it will be important to see how these rules change the market and what happens around the world.
—
Sources:
– Cointelegraph
– Coingape
– Cryptoslate
– Panewslab
– Daily Hodl