The European Union’s securities regulator has ordered crypto companies to delist non-compliant stablecoins by the end of the first quarter of 2025.
The EU’s new regulatory framework for Markets in Crypto Assets (MiCA) defines 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 cryptos.
The European Securities and Markets Authority (ESMA) says in a new public statement that all national authorities within the EU should force crypto asset service providers (CASPs) to delist non-compliant EMTs and ARTs “as soon as possible and at the latest by the end of the list ” to delete. of the first quarter of 2025.”
MiCA is new EU legislation that sets rules regarding the supervision, consumer protection and environmental safeguards of crypto assets.
The regulatory framework includes measures aimed at reducing financial crimes, including market manipulation, money laundering and terrorist financing. It also places stablecoin issuers under the European Banking Authority and requires them to maintain sufficient liquid reserves.
The part of the legislation covering stablecoins came into effect in June and the rest was rolled out in December.
The second largest stablecoin by market capitalization, Circle’s USDC, became compatible with MiCA last summer.
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