Noncompliant stablecoin issuers could potentially exit the EU market entirely, with a shift toward euro-backed stablecoins as demand picks up in European markets.
The European Union’s Markets in Crypto-Assets Regulation (MiCA) came into partial effect in June, with new rules concerning stablecoins coming into force on June 30.
Crypto exchanges may delist certain noncompliant stablecoins or restrict services for EU and European Economic Area (EEA)-based users. Many crypto exchanges operating within the EU have already taken action ahead of the new rules entering into force.
Cryptocurrency exchanges Uphold, Binance, Kraken and OKX have also started delisting stablecoins such as Tether (USDT). Bitstamp also plans to delist Euro Tether (EURT).