European investors will begin to feel the impact of the implementation of financial regulations established by the MICA (the European regulatory agency for crypto-assets). Investors should be aware of potentially concerning announcements from exchanges, which will remove or categorize several cryptocurrencies as “unauthorized” to comply with MICA policies, which will be officially implemented on June 30, 2024.
Given the imminent changes, cryptocurrency investors based in Europe may benefit from learning more about the policies and regulations that could alter access to crypto-assets, as well as the removals announced by platforms such as Binance and OKX.
Which MICA regulations will be implemented on June 30?
The new regulations assign the European Banking Authority the role of establishing “penalty payments for issuers of asset-referenced tokens and electronic money tokens.” Additionally, it bans the trading of certain stablecoins in an effort to increase “the degree of transparency of costs and charges of crypto-assets” and eliminate “the use of hidden or secondary charges.” To achieve these goals, MICA’s new regulations require crypto-asset providers to be officially licensed as a credit or electronic money institution.
Which cryptocurrencies will be removed?
In anticipation of the June 30 implementation, two popular exchanges in the European market, namely Binance and OKX, have announced changes. Binance has announced that it will categorize its cryptocurrencies as unauthorized or regulated to follow MICA guidelines. Unauthorized stablecoins will no longer be available to European investors after June 30. Some examples include DAI, Tether, and Gemini.
Earlier this year, the renowned OKX platform announced that European investors could no longer purchase Tether, which many speculators interpreted as an effort to comply with MICA. In contrast, the reliable and globally renowned Coinbase platform continues to offer a wide range of crypto-assets and staking opportunities to European investors.
These initial responses from exchanges to the implementation of MICA regulations point to a dual future for the European cryptocurrency market. On the one hand, investors may feel safer purchasing and using cryptocurrencies now they have the protection of this regulatory framework. On the other hand, the regulations might limit investors’ access to a variety of coins that may struggle to obtain registration as a credit or electronic money institution in the European Union.
Coinbase
- Regulated exchange
- An easy-to-use platform
- Free crypto training offered
Coinbase
