In a significant regulatory development, the European Union’s Markets in Crypto-Assets Regulation (MiCA) has been partially implemented as of June, with a new set of regulations targeting stablecoins that took effect on June 30. In anticipation of these changes, cryptocurrency exchanges within the EU, including Uphold, Binance, Kraken, and OKX, have begun to remove certain stablecoins like Tether (USDT) from their listings. Bitstamp is also preparing to cease offering Euro Tether (EURT).
Jón Egilsson, who previously chaired the supervisory board of the Icelandic Central Bank, shared with Cointelegraph his perspective that issuers of stablecoins not in compliance may withdraw from the EU market, potentially paving the way for a rise in euro-backed stablecoins as they become more sought-after in European markets.
The MiCA regulations, which will affect crypto asset service providers, are slated for introduction in December 2024.
In the United States, the Internal Revenue Service (IRS) has disclosed the finalized version of its crypto broker reporting guidelines. The new regulations will not apply to decentralized exchanges and self-custody wallets. Following industry feedback, the IRS has decided to delay the application of these rules to fully decentralized networks, citing the need for further consideration of their complexities.
However, stablecoins and tokenized assets will not be exempt from the IRS’s reporting requirements and will be treated similarly to other digital currencies. IRS Commissioner Danny Werfel has highlighted the importance of addressing the tax challenges posed by digital assets and the potential noncompliance among affluent individuals.
In a move towards embracing digital currencies, Bolivia’s central bank, Banco Central de Bolivia, has lifted its prohibition on Bitcoin and other crypto payments. This measure is part of an effort to modernize the nation’s payment system, allowing financial institutions to engage in cryptocurrency transactions through sanctioned electronic methods. Despite this progress, the central bank maintains that cryptocurrencies do not constitute legal tender.
Additionally, Banco Central de Bolivia is initiating an Economic and Financial Education Plan to raise public awareness about the risks associated with cryptocurrencies and to promote responsible management of these digital assets.
In a legal confrontation, Coinbase has initiated lawsuits against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). The suits claim that both the SEC and FDIC have not complied with Freedom of Information Act (FOIA) requests regarding their stance on Ethereum, especially in light of the blockchain’s transition to a proof-of-stake consensus model. Coinbase is seeking information related to Ethereum 2.0 and past inquiries involving Zachary Coburn and Enigma MPC, facilitated by its consulting firm, History Associates Inc. The legal actions accuse the SEC and FDIC of collaborating to deny digital asset companies critical banking services.