There are some important steps that cryptocurrency exchanges need to take to continue operating in the European Economic Area. Regulating cryptocurrency markets MiCA It also placed many responsibilities on the shoulders of the stock exchanges. The most comprehensive cryptocurrency regulation on a global scale was made by the EU. As a result, investors in the European region will be unable to access some stablecoins.
Coinbase Delist
Crypto Asset Markets of Coinbase AB, the largest US cryptocurrency exchange by volume.MiCA) will delist stablecoins that are unlicensed in the region to comply with the regulation. Stablecoins that do not meet MiCA requirements by December 30, 2024 will be restricted for the European Economic Area.
“Given our commitment to compliance, we intend to restrict stablecoins that do not meet MiCA requirements to users in the European Economic Area by December 30, 2024.”
Stablecoins that are required to obtain an authorization license from at least one EU country will be restricted for not doing so in accordance with the rules that came into force on June 30. Tether has yet to obtain an e-money license in any of the 27 member states.
The Future of Stablecoins
USDC, PYUSD are the popular stablecoins that have received their licenses so far. However, the fact that USDT, the largest stablecoin by market value, has not yet achieved this may cause it to see a contraction in its market share in the future. Circle’s USDC and EURC While stablecoins have received their licenses, USDC will be the biggest option among the few alternatives in the region.
As a result of the widespread use of regulations regarding cryptocurrencies on a global scale, crypto- We will see new restrictions on their money. While some governments are evaluating offers such as KYC for DeFi protocols, license requirements are now being introduced in examples such as the EU. Crypto companies will need to quickly adapt to the rules set for them by governments by expanding their compliance and legal teams.
Otherwise, it is possible that many cryptocurrency companies will weaken under the influence of regulatory pressure. In the new era for crypto, the privilege of operating by hiding in the gray area will be prevented. Companies that have been operating freely for years due to a lack of rules have had to face serious penalties, especially in the USA.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
