The ongoing debate over the regulatory treatment of stablecoins under the European Union’s Markets in Crypto-Assets Regulation (MiCA) has intensified.
The European Securities and Markets Authority (ESMA) recently provided additional insight into how MiCA applies to stablecoins that don’t meet the new rules. Binance, on March 3, announced plans to remove several stablecoins, including Tether’s USDT, from its platform for users in the European Economic Area (EEA). Despite this, users will still be able to deposit and withdraw these tokens after the delisting, set for March 31.
In an official statement, ESMA clarified that providing custody or transfer services for non-compliant stablecoins does not breach MiCA. The authority noted that these actions are not considered an “offering to the public” under the regulation. However, it advised that crypto service providers should prioritize halting services that allow users to acquire these tokens.
This clarification has stirred further confusion, as MiCA’s provisions continue to be interpreted in various ways. The regulator also reminded crypto providers that they are allowed to offer sell-only services until the end of March, allowing investors to exit their positions.
Despite this, questions about how MiCA applies to non-compliant stablecoins remain unresolved, with ongoing debates about the regulation’s scope and its application to sectors like tokenized real-world assets and staking.
As European regulators closely monitor the market’s adaptation to MiCA, the industry continues to grapple with the implications of the new laws and their impact on established crypto practices.
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