"ESMA Clarifies: MiCA Allows Non-Compliant Stablecoin Custody, Delistings Loom"
1min read The European Securities and Markets Authority (ESMA) has clarified that the Markets in Crypto-Assets (MiCA) regulations do not explicitly prohibit the custody and transfers of non-compliant stablecoins. This announcement comes as the crypto industry braces for significant changes under the new regulatory framework.
MiCA, set to come into effect in 2025, aims to create a harmonized regulatory environment for crypto assets across the European Union. While the rules do not explicitly ban non-compliant stablecoins, crypto service providers are advised to remove all non-MiCA stablecoins by March 31, 2025. This has led to several major exchanges, including Binance and Kraken, announcing plans to delist certain stablecoins in Europe.
Tether, the issuer of the USDT stablecoin, has expressed disappointment with the "rushed actions" surrounding the MiCA-driven delistings. The company has stated that the changes could create a "disorderly" market. Meanwhile, other exchanges like Crypto.com have also announced plans to delist stablecoins, including USDT, to comply with MiCA regulations.
In response to these developments, some industry players are exploring alternative stablecoins or even launching their own. Kraken, for instance, is reportedly considering launching its own stablecoin as it prepares to delist USDT in the European Economic Area. Paolo Ardoino, Tether's chief technology officer, has accused competitors and politicians of attempting to "kill Tether" amid the regulatory changes.
The ESMA's clarification on MiCA rules comes as the crypto industry continues to grapple with regulatory challenges across the globe. In China, for example, the government has taken a hard stance against cryptocurrencies, while in the United States, regulators are still working to establish a clear framework for the industry.
As the crypto industry evolves, so too must the regulatory landscape. MiCA represents a significant step towards harmonizing crypto regulations across the EU, but the industry will continue to face challenges as it navigates the complex and ever-changing regulatory environment.
