EddieJayonCrypto
23 Jan 25
The European Union's securities regulator has mandated that crypto firms must remove non-compliant stablecoins by the end of the first quarter of 2025. The EU's new regulatory framework, Markets in Crypto Assets (MiCA), categorizes stablecoins as asset-referenced tokens (ARTs) or electronic money to...
The EU securities regulator has mandated that crypto firms must remove non-compliant stablecoins by the end of the first quarter of 2025. The EU's new regulatory framework, Markets in Crypto Assets (MiCA), categorizes stablecoins as asset-referenced tokens (ARTs) or electronic money tokens (EMTs). EMTs are digital assets tied to the price of a single fiat currency, while ARTs can be based on a basket of currencies, assets, and/or cryptocurrencies. The European Securities and Markets Authority (ESMA) has directed all national authorities within the EU to compel crypto asset service providers (CASPs) to delist non-compliant EMTs and ARTs "as soon as possible and no later than the end of Q1 2025." MiCA aims to establish rules for supervision, consumer protection, and environmental safeguards of crypto assets, including measures to combat financial crimes such as market manipulation, money laundering, and terrorist financing. The legislation requires stablecoin issuers to hold sufficient liquid reserves and places them under the supervision of the European Banking Authority. The part of the legislation pertaining to stablecoins came into effect in June, with the remainder rolling out in December. Circle's USDC, the second-largest stablecoin by market cap, became compliant with MiCA last summer.