Is the custody and transfers service for USDT from Tether not restricted under MiCA?
The European Securities and Markets Authority (ESMA) confirms that the custody and transfer of stablecoins are not restricted under MiCA.
Cryptocurrency service providers in Europe must restrict the provision of services related to the acquisition of stablecoins.
The Markets in Crypto-Assets (MiCA) regulation comes into effect on December 30, 2024, to regulate the cryptocurrency industry in Europe. The increasing adoption and recognition of digital assets has made it necessary to establish clear regulatory policies. However, its guidelines regarding the issuance of stablecoins are still unclear.
The issue surfaced when the Binance platform removed several stablecoins, including Tether's USDT, for users in the European Economic Area. Binance recently issued this announcement to comply with MiCA policies. The leading exchange will stop offering stablecoins that are non-compliant with MiCA starting March 31 for users in the European Economic Area. However, it will support the custody, deposit, and withdrawal of these stablecoins after their removal from the list.
The Emirates Authority for Standardization and Metrology (ESMA) confirms that custody and services are not explicitly prohibited under MiCA