Markets in Crypto-Assets (MiCA) regulation is about to be implemented, and digital asset exchanges are preparing to comply. The new law’s requirements aim to protect investors, prevent financial crime, and ensure transparency. How are crypto exchanges reconsidering the options for European traders in light of recent events?

What is Known About MiCA

The European stablecoin regulation will come into force on June 30. The European Banking Authority (EBA) and the European Securities Market Authority (ESMA) are consulting on implementing the new rules. MiCA requires stablecoin issuers to be registered within the EU. However, the issue of how the law will apply to decentralized and foreign issuers remains unsolved. EBA representatives emphasized that there will be no grace period for stablecoins that are already entering the market.

How MiCA Classifies Stablecoins

Only a small proportion of European institutional funds have access to cryptocurrency, mostly due to regulatory uncertainty. However, the emergence of MiCA is likely to assuage these concerns by encouraging leading EU banks to offer services such as custody, trading, and issuance of e-money tokens or stablecoins.

MiCA also requires stablecoin issuers to maintain sufficient reserves. According to EBA Chairman José Manuel Campa, the agency will pay particular attention to the diversification of these funds. Operators need to eliminate conflicts of interest and display the connection of storage facilities with trading platforms.

Which Crypto Exchanges are Abandoning Stablecoins in Europe

Uphold

Starting July 1, Uphold will stop supporting USDT, DAI, FRAX, GUSD, USDP, and TUSD stablecoins for users from the European Economic Area (EEA) to comply with MiCA requirements. Owners of stablecoins must convert them into other assets by June 28. Otherwise, the excluded cryptocurrencies will be automatically replaced with USD Coin (USDC). The platform will also continue to support EURC from Circle and PYUSD from PayPal.

Binance

Binance announced that it will restrict access to unauthorized stablecoins for users in the EEA from June 30 due to MiCA regulations. Binance won’t delist any unauthorized stablecoins on the spot but will limit their availability for EEA users on certain products, such as Launchpool and Earn. The platform is introducing a phased plan for the transition to regulated assets. Restrictions will apply to the copy trading service, and users are advised to close positions and withdraw funds before June 29. Additionally, EEA traders will no longer have access to the FDUSD pool.

Kraken

Bloomberg recently reported that Kraken would stop supporting USDT in Europe in May. However, Kraken representatives later clarified that there are no plans to delist Tether or alter USDT trading pairs. Kraken will continue to serve payments and trading pairs with USDT in Europe. The company is committed to following all legal requirements while offering popular stablecoins to European customers.

OKX

Since March 14, the OKX crypto exchange has deprived European users of trading pairs with the stablecoin USDT. OKX’s decision is likely due to MiCA’s clause for the mandatory licensing of stablecoin operators. As an alternative to USDT, the OKX team offered European users USDC.

What is Going to Change in Europe with MiCA

For crypto investors, MiCA offers appreciated regulatory insights that can shape the trajectory of digital asset regulation. MiCA is meant to bring clarity to one of the world’s largest markets, making the EU an even more attractive place for web3 companies to innovate and attract talent. Regulatory clarity drives innovation and market competitiveness, providing the confidence and certainty that both investors and businesses need.

For more updates on cryptocurrency news, keep exploring the latest insights on Global Crypto News.

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