Leading cryptocurrency exchange Binance has warned that new upcoming European Union regulations could lead to a wave of stablecoins delistings as legal experts navigate the implications of the EU’s Markets in Crypto Assets (MiCA) legislation.

The United Kingdom’s financial markets regulator, the Financial Conduct Authority (FCA), has said it’s making a final warning to entities promoting cryptocurrency products to British consumers, and noted the consequences of not complying could be severe.

Leading stablecoin issuer Tether has started providing loans denominated in its USDT stablecoin to clients again, nearly a year after announcing it was halting the offering this year. The rise in USDT loans was revealed in the firm’s latest quarterly financial update.

Top stories in the Crypto Roundup today:

• Binance Exec Warns of Potential Stablecoins Delisting in Europe
• FCA Issues ‘Final Warning’ to Crypto Firms Over Upcoming Ad Regulations
• Tether Resumes USDT Loans, Despite Previous Pledge
• Crypto Market Movers – MKR, STORJ, RNDR

Binance Exec Warns of Potential Stablecoins Delisting in Europe

Leading cryptocurrency exchange Binance has warned that new upcoming European Union regulations could lead to a wave of stablecoins delistings as legal experts navigate the implications of the EU’s Markets in Crypto Assets (MiCA) legislation.

The EU’s legislation, which puts it at the forefrontof global cryptocurrency regulation, still has grey areas regardingits applicability to decentralized and foreign issuers. European Banking Authority (EBA) officials have noted there’s no grace period for coins already on the market.

EU’s MiCA was finalized last June and is set to allow exchanges and wallet providers to operate throughout the bloc with a single license. Its stipulations on stablecoins will start in June 2024, with some details being deliberated upon by the EBA and the European Securities and Markets Authority (ESMA).

During a digital public session helmed by the EBA, Marina Parthuisot, Binance France's chief legal officer, projected a grim forecast, saying that on June 30 the firm is “heading to a delisting of all stablecoins in Europe” over the lack of approved projects so far.

Parthuisot added this could “have a significant impact on the market in Europe compared to the rest of the world.” Responding to reports, Binance CEO Chapgneng Zhao said the firm has “a couple of partners launching EUR and other stablecoins, in fully compliant manners.”

Zhao said on social media that Parthuisot’s words were taken out of context, while Binance has published a blog post saying it’s confident “there will be a constructive solution in place” before June.

FCA Issues ‘Final Warning’ to Crypto Firms Over Upcoming Ad Regulations

The United Kingdom’s financial markets regulator, the Financial Conduct Authority (FCA), has said it’s making a final warning to entities promoting cryptocurrency products to British consumers, and noted the consequences of not complying could be severe.

In a four-page letter, the FCA recounted its efforts to reach out to cryptocurrency firms, and moved to help them follow rules announced on June 8. The regulator has also extended the initial October 8 deadline to January 8, 2024.

The delay was to “introduce features that require greater technical development,” and was accompanied by exhaustive documentation elucidating best practices. Per the FCA, however, “many unregistered, overseas cryptoasset firms” refused to engage with it.

The new rules will see the illegal promotion of crypto assets become a criminal offense, with violations potentially leading to promotions being blocked or removed from websites, social media, and apps.

The letter further disclosed that the FCA might pursue restitution from non-compliant firms. In addition, contracts these entities may establish with UK citizens could be rendered null.

Tether Resumes USDT Loans, Despite Previous Pledge

Leading stablecoin issuer Tether has started providing loans denominated in its USDT stablecoin to clients again, nearly a year after announcing it was halting the offering this year. The rise in USDT loans was revealed in the firm’s latest quarterly financial update.

The report shows a rise in USDT-denominated loans, as it notes Tether’s portfolio of assets includes $5.5 billion in loans, up from $5.3 billion in the preceding quarter. Earlier, Tether spokesperson Alex Welch confirmed the company has extended new loans in the year's second quarter.

Welch told the Wall Street Journal that the firm received “a few short-term loan requests from clients with whom we have cultivated longstanding relationships” and decided to “accommodate these requests.”

The move starkly contrasts the company’s declared intention to reduce secured loans in USDT reserves to zero throughout the year. Tether later responded to the report noting that financial institutions are failing to meet their customers’ requirements, and said it has excess reserves and high profitability that offset the secured loans.

The firm also noted it’s still committed to removing these loans from its reserves.

Crypto Market Movers – MKR, STORJ, RNDR

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Maker (MKR) - MakerDAO is an open-source project on the Ethereum blockchain and a Decentralized Autonomous Organization created in 2014. The project is managed by people around the world who hold its governance token, MKR.

Storj (STORJ) - Storj is a decentralized cloud storage platform that allows users to store their data securely and privately on a distributed network of nodes. The platform uses blockchain technology and cryptographic protocols to ensure that user data remains secure and immutable.

Render Token (RNDR) - Render is a platform that leverages blockchain technology to provide decentralized GPU-based rendering solutions. Its native cryptocurrency, Render Token (RNDR), plays a significant role within this ecosystem. Render's goal is to change the digital creation process by using globally available, underutilized GPU power, aiming to democratize access to rendering resources.

 

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