Stablecoins in Peril: Crypto Exchanges Make Changes

by Giorgi Kostiuk

a year ago

Some crypto exchanges are planning to remove stablecoins due to new regulations, sparking concern among investors.

What are Stablecoins?

Stablecoins are digital assets tied to the value of fiat money, typically the US dollar. They offer a mix of fiat currency stability and cryptocurrency features, making them popular among users.

Removing Stablecoins from Exchanges

Decentralized exchanges, like Coinbase, plan to remove stablecoins from their offerings. Coinbase will not sell stablecoins in the EU starting January 1, 2025.

Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024.Coinbase

EU Regulations and Their Impact

The EU has introduced MiCA, a comprehensive regulatory framework limiting stablecoin trade unless certain conditions are met. Companies like Circle have adapted, whereas others, like Tether, face challenges.

Tether commends EU regulators for their efforts in establishing a structured framework, as it plays a key role in fostering growth within the sector. However, as we have consistently expressed, some aspects of MiCA make the operation of EU-licensed stablecoins more complex and potentially introduce new risks to both local banking infrastructure and stablecoins themselves.Tether

The decision by exchanges to drop stablecoins is driven by new regulations. Initially affecting specific platforms, its wider impact is anticipated as other exchanges adopt similar policies.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

XRP and ALGO Join the High-Conviction Cluster

XRP and ALGO have joined the high-conviction cluster with bullish sentiments above 90, indicating a renewed focus on infrastructure-focused chains.

Lucas Weissmann2 minutes ago

Bullish Sentiment Surges Above 90 in Major Blockchain Networks

Bullish sentiment has surged above 90 across multiple blockchains, led by XLM, with XRP, ALGO, CRO, and KAS close behind.

Jesper Sørensen2 minutes ago

Bitcoin Cash Approaches Key Resistance Level

Bitcoin Cash is currently trading near 6603 after a significant price expansion, with volatility increasing and key support levels identified.

Rajesh Kumar2 minutes ago

Whale Trades on Hyperliquid HYPE Become Public Spectacle

Whale trades on Hyperliquid HYPE are now visible in real-time, significantly impacting market dynamics.

Emily Carter6 minutes ago

Hyperliquid HYPE's Revenue Model Sparks Debate

Despite pushing around 215 billion in weekly volume, Hyperliquid HYPE's price remains down about 47% from its all-time high. This disconnect is attributed to the platform's unique revenue model, which directs 100% of its revenue into buybacks, creating a direct link between usage and token value. Analysts are debating the sustainability of this model and whether the market has fully priced in the transparency premium it offers.