Certainly! Here’s a rewritten version of the article:
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Update as of June 28, 16:40 am UTC: Bitstamp has clarified its intention to delist Euro Tether (EURT), not USDT.
The cryptocurrency landscape in the European Union is on the brink of significant change with the impending introduction of the first set of regulations under the Markets in Crypto-Assets (MiCA) Regulation.
MiCA’s implementation is set to roll out gradually. Regulations affecting stablecoins are expected to take effect from June 30 onwards, with further regulations impacting crypto asset service providers slated for December.
This legislation represents a landmark effort to establish consistent market rules for crypto assets across the EU. It has been anticipated since it was first proposed in September 2020.
In April 2023, the EU Parliament approved the MiCA laws, aiming to usher in a new era of regulation for the cryptocurrency sector, solidifying its place within Europe’s financial landscape.
On June 9, 2023, MiCA was officially published in the Official Journal of the European Union. Now, a year later, the initial regulations are coming into force. But what does this mean for cryptocurrency companies, EU member states, and users?
Cointelegraph reached out to industry experts across Europe to grasp the implications of these first MiCA rules.
Short-term effects
While governmental regulation typically adds bureaucratic layers to industries, it also bestows a level of legitimacy. This is particularly significant for the crypto industry, long scrutinized for its volatility and speculative nature.
Reinis Znotiņš, Executive Director of the Latvian Blockchain Association, highlighted that one of the initial impacts post-MiCA introduction will be “psychological.” He noted that doubts are dissipating as the EU Parliament has affirmed the legitimacy of crypto businesses, providing a defined legal framework for operations.
Jón Egilsson, former Chairman of the Supervisory Board of the Icelandic Central Bank and co-founder of Monerium, remarked that MiCA offers regulatory clarity but also triggers a “market disruption.”
Farewell, stablecoins
This shift means that crypto exchanges may delist non-compliant stablecoins or restrict services for EU and European Economic Area (EEA) users. Many EU-based crypto exchanges have already begun this process.
Uphold, Binance, Kraken, and OKX have also initiated delistings, such as Tether (USDT). Bitstamp plans to delist Euro Tether (EURT).
Egilsson suggested that non-compliant stablecoin issuers may exit the EU market altogether, potentially leading to increased demand for euro-backed stablecoins in European markets.
Laura Chaput, Head of Regulatory Compliance at Keyrock, echoed this sentiment, adding:
Additionally, on June 13, the European Banking Authority (EBA) published several last-minute reports on Regulatory Technical Standards (RTS) related to EMTs under MiCA. These reports outline standards effective from June 30 and must be duly incorporated.
Further reading:
Europe’s crypto industry poised for improved regulation
In the short term, regulatory authorities are likely to clarify newly issued regulatory issues, including critical components like safeguarding rules, which have only recently emerged.
EU crypto businesses
The primary focus for crypto firms within the EU will be to stay informed about regulations and any last-minute alterations.
Egilsson stressed the importance of obtaining proper authorization, which entails meeting stringent organizational, governance, and capital requirements, including maintaining adequate reserves to back their value.
He pointed out the significance for stablecoin issuers:
Chaput indicated that some businesses may explore “regulatory arbitrage” by relocating or utilizing reverse solicitation principles.
Conversely, she noted that this new framework could “open doors” for established financial institutions to enter the stablecoin market.
Users, this concerns you
With June 30 approaching, EU crypto users may be contemplating their role in this evolving landscape. Chaput advised them to prepare for a transformed ecosystem with restricted access to certain assets but greater transparency regarding token operations.
She also warned of the potential for users to turn to non-EU exchanges for wider token variety, exposing themselves to less regulated environments with reduced protections.
Egilsson expressed hope for long-term benefits, stating that users may ultimately gain from enhanced protections and clearer information about the crypto assets they engage with.
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This version maintains the original information while rephrasing it for clarity and fluency, adhering strictly to grammatical correctness and proper noun usage.