Skip Crypto Exec below, first MiCA deadline looms, and more.
As the first deadline for EU markets to comply with new rules under the Crypto-Assets Regulation (MiCA) is approaching, more stable coins are losing ground in local markets.
On June 26, Bitstamp announced that Tether's euro-peg stablecoin, EURT, was being canceled to comply with the new rules. The exchange is one of the first to list the coin in 2021. Similarly, Uphold recently informed its European users that six popular stablecoins will no longer be supported on the platform: Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP) and TrueUSD (TUSD).
Binance has also updated its stability coin strategy. The exchange now divides stablecoins into “controlled” and “unauthorized” coins in accordance with the new rules. Coins marked “unauthorized” are in “sale-only” mode on the platform, Binance explained, currently only a few stable coins meet MiCA requirements.
The MiCA rule will be implemented in two phases starting June 30, 2024 and fully operational by December 30, 2024. The framework divides crypto assets into three main categories: electronic money tokens, asset reference tokens and other crypto assets such as utility tokens.
According to the regulation, a stable coin is considered a concern for monetary sovereignty and financial stability. Currently, the stablecoin has a market capitalization of over $163 billion.
“With clear rules and regulations, the regulation provides the necessary investor protections while contributing to financial stability and market integrity in the European Union,” said Olivier Carré, deputy manager of PwC Luxembourg.
Some crypto firms have criticized European regulation. “There are very few banks in Europe that accept this kind of business. Finding just one is already very difficult!” In an interview in May, Tether CEO Paolo Arduino mentioned stablecoin reserve requirements of 60% in cash deposits at multiple banks.
This week's CryptoBiz explores the departure of Jump Crypto's CEO, the return of Animoka Brands to the public markets, the corporate dispute between Riot and Bitfarms, and more.
The president of Jump Crypto went down
Jump Crypto President Kanav Karia Resigns Under US Commodity Futures Trading Commission Investigation Jump Crypto is the digital asset subsidiary of Jump Trading. According to Kariya's social media announcement, he plans to focus on personal relationships and reading while looking for his next job. Jump Crypto has been involved in several controversies, including the 2022 wormhole bridge hack, the collapse of the Terra ecosystem, and exposure to FTX.
Animoka Brands plans to return to the stock market in 2025.
Gaming and Metaverse conglomerate Animoca Brands is reportedly considering a return to the public market after delisting from the Australian Securities Exchange (ASX) in March 2020. This time, the company is targeting friendly jurisdictions by analyzing Hong Kong and the Middle East. Animoka has been holding meetings with investment bankers but has not picked a location or hired a consultant. In March 2020, the ASX delisted Animoka after expressing concerns about its listing regulations, particularly regarding investments in crypto and blockchain-related businesses.
Riot wants three Bitfarms board members, it says it owns a 14.9% stake.
Riot Platforms wants to replace three Bitfarms board members with a 14.9% stake in the company. Previously, Bitfarms announced a shareholder rights plan to prevent further stock purchases by Riot. Instead of continuing to buy BitFarm shares, Riot plans to replace three of the company's board members and remove additional directors appointed after the announcement. The plan to revamp the Bitfarms board is the latest development in Riot's plans to enter Bitfarms. In May, Riot offered to buy the mining company for $950 million.
Nubank brings Bitcoin Lightning to its 100 million Latin American customers
Brazilian neobank Nubank has partnered with Lightspark to offer the Bitcoin Lightning Network to its 100 million customers in Latin America. Lightspark also integrates the Universal Money Address Standard, a payment system built on Lightning for users to send money to an email-like address. Since it was co-founded in 2022 by former PayPal President David Marcus, Lightspark has been building the Lightning Network infrastructure for enterprises.
Crypto Biz is the weekly heartbeat of the business behind blockchain and crypto, delivered straight to your inbox every Thursday.
