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Update on stablecoins after change by MiCAR

Update on stablecoins after change by MiCAR

On June 30, 2024, the European MiCAR legislation will come into effect for stablecoins. This means that from that moment on, stablecoins will require legal approval. Coinmerce has listed several stablecoins, but currently, none of these coins have the required approval. As a result, we are forced to limit the functionalities of these stablecoins. We will implement several changes, which we will explain below.

Overview changes

From June 28 2024 the following features will be disabled for stablecoins that no longer meet the requirements from MiCAR:
  • Buying
  • Earn

The following features remain available for these stablecoins:
  • Holding
  • Selling
  • Depositing
  • Withdrawing

List of affected stablecoins

The aforementioned changes apply to the following stablecoins:

- Tether USD (USDT)
- USD Coin (USDC)
- True USD (TUSD)
- Paxos USD (USDP)
- First Digital USD (FDUSD)

Users do not need to take any action. You can still safely store your stablecoins with Coinmerce. We are actively monitoring whether stablecoins receive the necessary approval required under MiCAR so that we can enable buying and Earn functionalities again in the future.

What is MiCAR?

MiCAR stands for Markets in Crypto-Assets Regulation, which enforces rules and regulations for crypto in Europe. The goal is to create a framework to protect users against the risks of crypto. Coinmerce closely follows MiCAR regulations to continue offering crypto as safely as possible within Europe.

What are stablecoins?

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a reserve asset, such as the US dollar, euro, gold, or a collection of various coins. This makes them less volatile than, for example, Bitcoin or Ethereum, which constantly change in value due to various influences. Because a stablecoin always remains stable in value, these types of cryptocurrencies are suitable for transactions and savings.

Why is Coinmerce restricting the purchase of stablecoins?

MiCAR has introduced new regulations for the trading of stablecoins. These coins are divided into two categories: Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs). EMTs are coins that are pegged to a single official currency, such as USDT being pegged to the US dollar. ARTs are coins that are pegged to multiple coins or assets, or a combination thereof. An example of this is DAI. Stricter rules have been imposed on both categories of stablecoins. Because the coins currently do not meet these rules and are not approved by MiCAR, they can no longer be purchased on our platform.

Can I still swap stablecoins?

With these restrictions on stablecoins, it is unfortunately no longer possible to swap your current coins for stablecoins. However, you can still swap your current stablecoins for other coins on our platform that are not listed above.

What does this mean for my holdings?

Nothing will change with your current holdings. You can still safely store them in your Coinmerce wallet. You can also still sell and send your stablecoins. The only changes are that you can no longer activate Earn for your stablecoins and you cannot buy more. This only applies to the coins listed above.