Understanding MiCA: A New Rulebook for Crypto in Europe
The European Union has created new rules for cryptocurrencies called the Markets in Crypto-Assets (MiCA) regulations. Recently, there was some news about Tether’s USDt (USDT), a popular stablecoin. The European Securities and Markets Authority (ESMA) said that MiCA doesn’t stop people from keeping and moving non-approved stablecoins like USDT[1][4]. This is important because big crypto exchanges like Binance are planning to remove USDT and other non-approved stablecoins for users in Europe[3][5]. Let’s find out what these changes mean for the future of cryptocurrency in Europe.
What is MiCA and Why is it Important?
MiCA is a new set of rules that makes the European crypto market clearer and more stable. It helps protect people who use crypto, stops financial crimes, and makes sure crypto doesn’t harm the environment[5]. However, some big crypto companies might not be able to work in Europe because they can’t meet MiCA’s strict rules. For example, Tether, which makes USDT, hasn’t been approved by MiCA even though it’s the biggest stablecoin[2].
Who are the Approved Stablecoin Makers?
Ten companies that make stablecoins have been approved by MiCA, like Banking Circle, Circle, and Societe Generale[2]. This shows that the EU wants stablecoin makers to follow rules and be safe. But some people think it’s strange that Tether isn’t on this list, and they wonder if the EU is trying to keep some crypto companies out of Europe[2].
What’s Happening to Non-Approved Stablecoins?
Binance, a big crypto exchange, is removing nine non-approved stablecoins, including USDT, from its platform for European users[3][5]. But even though these stablecoins are being removed, Binance will still let people keep, take out, and store them, just like the ESMA said is okay[1][3].
The Future of Stablecoins in Europe
The ESMA said that even if you can’t trade non-approved stablecoins, you can still keep and move them. This means that people can slowly stop using these stablecoins without causing big problems[1]. But we don’t know yet what will happen to stablecoins like USDT in the long run.
What about Other Places in the World?
Tether is looking for new places to do business because it can’t work in Europe the way it wants to. It’s even investing in other kinds of businesses like energy and sports[2]. This shows that even if there are problems in Europe, there are still good opportunities elsewhere.
A New Way to Watch Over Crypto in Europe
In short, MiCA is making new rules for crypto in Europe that focus on being safe and protecting people. Even if Tether’s USDT has some trouble in Europe, people can still keep and move it. As the crypto world changes, we should watch how these new rules affect the market and what happens in other parts of the world.
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Sources:
– Cointelegraph
– Coingape
– Cryptoslate
– Panewslab
– Daily Hodl