Chris Heatherly’s Post

🌍 Forward thinking jurisdictions like our own 🇯🇪Jersey British Isles are taking a common sense innovative and evolutionary approach, we host and exchange our own $€£ BiPS stablecoins alongside USDC and soon to be RLUSD - IMHO the EMI regime will not be the legal foundation for the future stablecoin regime and CBDC’s have zero appeal. 🏆 Common sense, KYC/AML global equivalence and P2P interoperability will win in the end I believe the same/utility commodity like regulatory regime will be driven from 🇺🇸 new regs in 2025. Moneybrain Inc has been sleeping and is waking up in America in the new year !!! #GlobalP2P #Moneybrain #BiPS #Stablecoins

From December 30th, USDT Will Disappear From Most European Crypto Exchanges USDT is being delisted across Europe. MiCA regulations are forcing Tether out, and the consequences will reshape crypto trading in the region. Here’s what’s happening and why: 1. MiCA Destroys Stablecoin Profitability MiCA requires 60% of reserves to sit in low-risk, bank-held assets while banning interest payments to users. For issuers like Tether, this destroys profitability. You can’t generate returns under these restrictions, so USDT won’t comply. 2. Tether Doesn’t Need Europe’s Tiny Market Tether and Circle control 80% of a $203 billion global stablecoin market. Europe’s Euro-backed stablecoins account for just $252 million. Market isn’t big enough to justify jumping through MiCA’s regulatory hoops. 3. MiCA Threatens Liquidity for Traders Over 90% of stablecoin usage is driven by traders moving capital between exchanges. By forcing reliance on legacy banking systems, MiCA risks disrupting liquidity flows. You have seen it during USDC crisis after Silicon Valley Bank’s collapse. Risk for Europe Without USDT, Europe risks losing access to most liquid stablecoin. Traders and liquidity will move to other jurisdictions. MiCA will fragment the market and push innovation elsewhere. Will MiCA’s vision make Europe a crypto leader - or leave it behind? Share your thoughts below. Follow 👉 Anton Golub & share ♻️ with your network If you like my content, you will love my newsletter. Subscribe to my newsletter and join 5’000+ Crypto & Web3 leaders: antongolub.substack.com

Really, Tether should be delisted from all exchanges until it conducts a proper audit. You just cant have a multi-billion dollar stablecoin firm that isn’t following proper regulations. It doesn’t matter if its Europe, Asia or America, auditing should be required to verify liquidity. Since the FTX Incident, centralised exchanges on crypto have been (socially) forced to provide audits of their reserves to ensure that they are liquid. Not sure why this shouldn’t be the case for custodians/providers like Tether. If you look at any decentralised stablecoin provider, they will show the entire exposure behind the stablecoin and the liquidity it is backed with. Decentralised Blockchains allow for automatic auditing of assets and entities.

Believe many institutions will adjust developement strategies…

Lots of investment and tech innovation is about to leave Europe, as it dives deeper into being a walled off, mini-ecosystem.

𝗔𝗿𝗲 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 𝗮𝘁 𝗿𝗶𝘀𝗸? The EU MiCA Framework is coming!🚨 On 30th December, Europe’s Markets in Crypto-Assets Regulation (MiCA) will come into full effect, bringing a groundbreaking shift to crypto regulation. But here’s the thing: MiCA's 𝗻𝗲𝘄 𝗯𝗮𝗻𝗸 𝗿𝗲𝘀𝗲𝗿𝘃𝗲 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 𝗰𝗼𝘂𝗹𝗱 𝗽𝗼𝘀𝗲 𝘀𝘆𝘀𝘁𝗲𝗺𝗶𝗰 𝗿𝗶𝘀𝗸𝘀 𝗳𝗼𝗿 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀. 👉 What’s happening? MiCA mandates that stablecoin issuers hold 𝟲𝟬% 𝗼𝗳 𝗿𝗲𝘀𝗲𝗿𝘃𝗲𝘀 in European banks. On paper, it sounds like a move toward stability. However, the reality is more complex: 1️⃣ Banks can loan out up to 90% of their reserves, making stablecoin reserves indirectly exposed to banking risks. 2️⃣ If a bank holding these reserves collapses, only €100,000 per account is guaranteed under EU law. Tether’s CEO, Paolo A., warns that this structure could ripple instability through the broader crypto ecosystem. 📉 𝗪𝗵𝘆 𝗶𝘁 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: Stablecoins are the backbone of DeFi and crypto transactions, enabling everything from remittances to smart contracts. Their stability impacts financial markets worldwide. MiCA’s rules could reshape the balance between regulation, innovation, and systemic risks, setting a precedent globally. The implications go far beyond the crypto world: 🟢 𝗠𝗶𝗖𝗔’𝘀 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗦𝗺𝗮𝗹𝗹𝗲𝗿 𝗙𝗶𝗿𝗺𝘀 1️⃣ Compliance costs favor larger firms, leading to consolidation. 2️⃣ Smaller Web3 players may find it harder to compete, with many 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗶𝗻𝗴 𝗮 𝗺𝗼𝘃𝗲 𝘁𝗼 𝗠𝗶𝗱𝗱𝗹𝗲 𝗘𝗮𝘀𝘁𝗲𝗿𝗻 𝗺𝗮𝗿𝗸𝗲𝘁𝘀, where regulations are more favorable. The framework risks turning crypto into traditional finance (TradFi). And more capital equals easier scalability. 🟢 𝗧𝗵𝗲 𝗥𝗼𝗹𝗲 𝗼𝗳 𝗕𝗶𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝘀 1️⃣ Major European banks like Societe Generale are already launching MiCA-compliant products (e.g., the EUR CoinVertible stablecoin) 2️⃣ Partnerships like Bitpanda's with Stiftung Landesbank Baden-Württemberg highlight the growing synergy between traditional finance and crypto. Stay informed—this is just the beginning of crypto's regulatory evolution! 💬 𝗗𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝗠𝗶𝗖𝗔 𝘄𝗶𝗹𝗹 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻 𝘁𝗵𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗼𝗿 𝘀𝘁𝗶𝗳𝗹𝗲 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻? Let’s discuss. #MiCA #CryptoRegulation #Stablecoins #Web3 #DeFi

As regulatory pressure increases across Europe, Tether's USDT is facing significant scrutiny, leading to its delisting or restricted use on several crypto exchanges. The Minfin article explores this trend and its implications for stablecoin users, particularly in light of Europe’s new MiCA (Markets in Crypto-Assets Regulation) framework. Key Highlights: Regulatory Crackdown: European regulators are ramping up enforcement against stablecoins like USDT due to concerns about compliance with AML/KYC standards, transparency, and systemic risk. Shift to Alternatives: Traders and exchanges are pivoting to other stablecoins, like Circle’s USDC, which has positioned itself as more regulatory-friendly. Risks to Users: For retail and institutional users reliant on USDT for liquidity and cross-border transfers, the reduced availability in Europe creates challenges, including higher transaction costs and potential operational delays. My Perspective: This development highlights the growing regulatory divergence in the global crypto landscape. While MiCA provides clarity and opportunities for innovation, it also raises the bar for compliance. Stablecoin issuers will need to: 1. Enhance transparency around reserves and auditing to regain trust. 2. Adapt to regional compliance frameworks or risk losing market share. 3. Focus on cross-border interoperability, as restrictions in one region could lead to fragmentation. For crypto investors, this is a wake-up call to diversify portfolios and remain agile as regulatory frameworks evolve. Open Question: Will the regulatory shift push stablecoin innovations forward or hinder broader crypto adoption in Europe? I’d love to hear your thoughts. How should businesses and individuals adapt to this changing landscape? Feel free to share your insights below! #CryptoRegulation #Stablecoins #DigitalAssets #MiCA #USDT

Crypto: MiCA approves Circle for Issuing Stablecoins in Europe - Cointribune: The crypto landscape in Europe has just undergone a major change with Circle's approval to issue stablecoins by MiCA (Markets in Crypto-Assets ...

What can we understand about the regulatory landscape for crypto in 2024? There are two words that describe it well: complex and varied. Governments worldwide are grappling with the evolution of digital assets, aiming to protect consumers while maintaining innovation. Not every region has had the same approach, resulting in varying regulations from country to country. The United States looks to seek regulatory clarity ahead of a tense election in November. The country’s main focus is to require exchanges to register with the SEC. The European Union has introduced MiCA - we broke down what that means here: https://lnkd.in/d6CZ2__G In Asia, China maintains a strict ban on trading crypto. In contrast, countries such as Hong Kong and Thailand are actively fostering the growth of the crypto industry through clear guidelines, licenses and risk education. Japan’s capital Tokyo is home to over 100 crypto-friendly businesses and dozens of Bitcoin ATMs, with Bitcoin being a legal form of payment since 2017. There is a growing global focus on central bank digital currencies (CBDCs), and how they will fit into existing financial regulations. The main difficulties facing #regulators in 2024 are cross-border challenges, with a lack of cohesive frameworks exposing potentially unsafe gaps. Ultimately, it is up to the industry to collaborate with regulators to ensure that the best possible regulatory frameworks are created with both customer safety and innovation in mind.

European Securities and Markets Authority (ESMA): #Crypto #assets: Market structures and EU relevance This article provides a detailed overview of patterns in crypto-asset secondary markets. Over the last decade, crypto assets have developed into an extensive system and gained considerable attention, especially due to the risks they pose to consumers and financial stability. ESMA monitors these risks and has repeatedly issued warnings to investors. The article aims to improve specifically our understanding of crypto-asset trading and the extent to which it resembles or differs from traditional financial markets. It also identify current and potential areas of risk, not only to consumers but also to market order and financial stability. Finally, the analysis informs and supports the implementation of the EU Markets in Crypto-Assets (MiCA) regulation. The article finds that crypto-asset prices are characterised by highly volatile boom and bust cycles and an overall co-movement with equity markets. While a large number of crypto assets have emerged, market capitalisations and trading volumes remain significantly concentrated in a few assets. Only around 20% to 30% of transactions involve fiat currencies and most transactions occur within the system itself. The distribution of involved fiat money reflects a high reliance on the US dollar and the South Korean won as the market’s on- and off-ramp. The euro only plays a minor role and the announcement of the MiCA regulation has not caused an increase in euro transactions so far. Trading volumes are highly concentrated in a few crypto exchanges: Ten exchanges process about 90% of trades, and the largest exchange alone accounts for almost half of global trading volumes. Moreover, the finds that market liquidity can vary widely and tends to be higher in the largest exchanges. Identifying the origin of order flow or the geographic location of crypto exchanges remains problematic. The article observes that around 55% of trading volume is executed on crypto exchanges that hold an EU license as a virtual asset service provider (VASP). However, most of those transactions are likely to occur outside the EU. Link: https://lnkd.in/eTiBFUwD