Understanding MiCA: A New Rulebook for Crypto in Europe
The European Union (EU) has a new set of rules for cryptocurrency called Markets in Crypto-Assets (MiCA). These rules are causing a stir, especially with news about Tether’s USDt (USDT) and how it’s affected. Let’s explore what’s happening and what it means for the future of crypto in Europe.
What is MiCA and Why is it Important?
MiCA is like a big rulebook for the EU’s crypto world. It’s designed to make things clearer and safer for everyone. It wants to protect people, stop bad things like money laundering, and make sure crypto doesn’t harm the environment too much[5]. But some big players, like Tether, aren’t happy because they can’t follow all these rules.
Who are the Approved Stablecoin Issuers?
Ten companies that make stablecoins, like Banking Circle and Circle, have been approved under MiCA[2]. This means they follow the rules. But Tether, the biggest stablecoin, isn’t on the list. This has started a big debate about what the EU wants and if it might isolate the market.
What’s Happening with Stablecoins?
Big exchanges like Binance are removing non-approved stablecoins, like USDT, from their platforms for EU users[3][5]. But they’re still letting people use these coins for things like deposits and withdrawals. This is because the European Securities and Markets Authority (ESMA) said it’s okay to do this under MiCA[1][3].
The Future of Stablecoins in Europe
The ESMA said it’s okay to keep using non-approved stablecoins, but you might not be able to trade them as easily. This means people can still use them, but they might have to find other ways to buy and sell them. Tether is now looking to grow in other parts of the world because of these rules[2].
A New Era for Crypto Regulation
In short, MiCA is changing how crypto works in Europe. It’s making sure people follow the rules and are protected. While Tether might have some trouble in the EU, people can still use and keep their USDT. We’ll have to see how these rules change the crypto world and what happens next.
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Sources:
– Cointelegraph
– Coingape
– Cryptoslate
– Panewslab
– Daily Hodl