World’s largest stabelcoin Tether might face the risk of getting delisted given the regulatory uncertainty in the realm. According to reports on December 13th, the leading cryptocurrency exchange in the US Again, Coinbase has issued a warning to its users.
According to the warning, Stablecoins that have violated the Markets in Crypto-Asset Regulations (MiCA), such as Tether’s USDT stablecoin, may be delisted.
CoinBase’s Caution Comes For 6 Stablecoins
Coinbase’s caution coincides with the most important crypto regulations’ enforcement deadline. Coinbase Europe, Coinbase Germany, and Coinbase Custody International are reportedly informing users that they will cease to support a total of six stablecoins by December 13.
Some exchanges and issuers of digital assets have also been forced to reconsider their approaches as a result of the MiCA regulations’ implementation.
For example, it has been reported that Revolut and Robinhood are thinking about releasing their stablecoins. Next month, Coinbase intends to give users an update on additional steps and choices to help them deal with these changes.
Implications of MiCA Regulations
In an interesting move to comply with MiCA, Coinbase also revealed last month that it would stop paying USDC rewards to holders in the European Economic Area. Users can earn yields by holding USDC on the exchange thanks to the program. According to reports, it was accessible in multiple locations, with yields differing depending on the location.
Will Ripple Benefit From MiCA Regulations?
With the inculcations of the new laws, the entire Stablecoin market has seen consequences. However, one ecosystem that might benefit from the rules could be Ripple’s RLUSD.
The New York Department of Financial Services (NYDFS) gave Ripple final approval on December 10th to list its stablecoin. The official announcement states that Ripple Labs’ RLUSD stablecoin has received regulatory approval from the NYDFS.
Ripple plans to formally launch RLUSD aims at aiding in the expansion of international payment and remittance transfers. For RLUSD, an enterprise-grade stablecoin with a USD value, Ripple had recently revealed its users and exchange partners.
Through strategic partnerships with renowned international exchanges and platforms, such as Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish, institutions and users will have access to RLUSD worldwide following the listing.
To create a currency with “trust, liquidity, and compliance as its main tenets,” Ripple’s new Stablecoin aims to achieve this goal.
If Ripple’s RLUSD complies with all regulatory guidelines, it is likely that the coin will become a new investor favorite in future.