Cryptocurrency exchange Bitstamp is preparing for the full enforcement of Europe’s Markets in Crypto-Assets Regulation (MiCA) by delisting Tether’s euro-pegged stablecoin, the Euro Tether (EURT). Bitstamp, one of the first exchanges to list Euro Tether in November 2021, announced on June 26 that EURT will be delisted before the end of June.

This move aligns with Bitstamp’s efforts to comply with MiCA, which comes into force on June 30. James Sullivan, Bitstamp’s managing director for the United Kingdom, emphasized the company’s support for MiCA’s mission to standardize crypto regulation across the European Union. Sullivan stated, “We have consistently advocated for a proportionate response to regulation that protects consumers while allowing for the ongoing maturation of cryptocurrencies as an asset class.”

Decline of Euro Tether

Launched in 2021, Euro Tether (EURT) is a stablecoin issued by Tether, the same company behind the U.S. dollar-pegged stablecoin USD Tether (USDT). While USDT is the largest stablecoin by market value, exceeding $110 billion, EURT has a much smaller market capitalization, valued at approximately $33 million as of the announcement. The market cap of EURT has significantly declined from its peak of around $236 million in February 2022.

Bitstamp’s decision to delist EURT is a response to the regulatory requirements set by MiCA. Sullivan added, “Our commitment to compliance and security means we are in a strong position to adapt to these welcome changes. We are communicating directly with the small proportion of our customers whose asset mixes are affected.”

Impact on Other Stablecoins and Exchange Strategy

Bitstamp’s delisting of EURT will not affect other stablecoins that are not euro-denominated. The exchange clarified that Electronic Money Tokens (EMTs) not denominated in euros, which are already available on the platform but not within MiCA regulation, will not be delisted. However, the availability of these tokens will be limited to “certain products” for European customers.

Bitstamp will not list any new EMTs that do not meet MiCA requirements nor will it engage in any marketing of them. Currently, Bitstamp supports the trading of USDT and Circle’s USDC stablecoin. Unlike Bitstamp, some exchanges, such as Uphold, have chosen to delist USDT and six other stablecoins from their platforms in accordance with MiCA rules, as announced on June 18.

Tether's Stance on MiCA

Tether CEO Paolo Ardoino has reportedly criticized the European regulation, stating in May 2024 that the company did not intend to be regulated under MiCA. This regulatory push and the resulting delisting actions reflect the evolving landscape of cryptocurrency regulation in Europe, highlighting the balancing act between compliance and the operational strategies of crypto exchanges.

As MiCA's implementation date approaches, Bitstamp’s proactive measures to align with the new regulatory framework underscore the significant impact of these regulations on the crypto market. The delisting of EURT is a clear example of the adjustments that exchanges and stablecoin issuers are making to navigate the changing regulatory environment, ensuring compliance while continuing to offer secure and compliant trading options for their users.