Tether's status has been explicitly detailed by ESMA; it was previously perceived as self-evident by the Commission.
In a recent development, the European Securities and Markets Authority (ESMA) has issued a statement calling for crypto-asset service providers (CASPs) or crypto exchanges to de-list non-compliant stablecoins (e-money tokens) in an orderly manner. The de-listing is intended to comply with MiCA regulations.
The ESMA has not publicly named specific stablecoins as non-compliant with MiCAR; instead, it provides general guidance on compliance requirements for stablecoins. However, in the context of de-listing, the authority has mentioned Tether, a stablecoin that is not Euro based, as one of the non-compliant stablecoins. Tether has already been listed before MiCAR came into force.
Peter Kerstens, an advisor to the European Commission involved in drafting the legislation, has stated that if a crypto-asset is unauthorized, it cannot be listed. He reiterated this point, clarifying that the currency doesn't matter in the context of the unauthorized listing. Kerstens seemed dumbfounded about the amount of money spent on reams of legal advice on this topic.
The de-listing of Tether is ongoing among EU crypto exchanges. Some clients may still hold Tether, and the exchanges have until the end of March to support clients in converting to compliant stablecoins. Tether, however, has announced its intention not to become MiCAR compliant.
The discussion in the crypto community revolves around whether EU crypto exchanges must de-list the Tether stablecoin. ESMA, on the other hand, hasn't mentioned any other stablecoin names in the context of de-listing, apart from Tether.
ESMA wants crypto exchanges to stop enabling clients to buy or acquire unauthorized stablecoins such as Tether by the end of January. By the end of March, crypto exchanges have until the end of March to support clients in converting to compliant stablecoins.
The de-listing of Tether is a significant move towards ensuring compliance with MiCA regulations and maintaining a secure and stable crypto market within the EU.
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