📢🔔 Heads up, BTC enthusiasts! New York-based crypto exchange, Uphold, is delisting six stablecoins, including the biggie - Tether (USDT) 📉🚫. This move is in response to the upcoming MiCA regulation in the European Union, set to fully take effect on June 30th, 2024.
🤔 But what does this mean for the future of USDT in the region? Tim Wang, COO of Elixir, suggests that short-term effects could lead to market dislocation for liquidity and trading markets due to USDC and USDT dominance on centralized exchanges.
🔍 The new EU crypto laws impose strict regulations on fiat-backed stablecoins and e-money tokens exceeding a specific adoption threshold. Key provisions of MiCA include a 1:1 backing of fiat-based stablecoins with liquid reserves, custodial separation of reserve assets, and a prohibition on algorithmic stablecoins.
🔄 Uphold isn't alone in this. Other major crypto exchanges like Kraken, Binance, and OKX have also tweaked their stablecoin listing policies to stay in line with regulations.
🌐 While the MiCA regulations could influence crypto regulations in other regions, including the US, the provisions for stablecoin may not hold the same weight. Wang believes that "stablecoin hegemony" will increasingly become a contentious political topic.
🌟 Stay tuned, BTC lovers! The crypto world is always full of surprises! 🚀🌕