Seeds of Wisdom RV and Economic Updates Wednesday Afternoon 3-05-25
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CUSTODY AND TRANSFERS OF NON-MICA-COMPLIANT STABLECOINS NOT RESTRICTED — ESMA
The European Securities and Markets Authority confirmed that MiCA rules do not explicitly ban non-compliant stablecoin custody and transfers.
The European Securities and Markets Authority (ESMA) has added new comments on the status of stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA), adding to the ongoing uncertainty around their classification and use.
On March 3, Binance announced plans to delist nine non-MiCA-compliant stablecoins, including Tether’s UDSt, for users in the European Economic Area (EEA).
Despite removing the affected tokens for trading, Binance said it will support deposits and withdrawals of non-MiCA-compliant stablecoins after the delisting on March 31.
According to ESMA, a key regulatory body overseeing MiCA compliance in Europe, providing custody and transfer services for non-compliant stablecoins does not violate the new European cryptocurrency laws.
Custody and transfer of non-MiCA-compliant tokens “not explicitly prohibited”
“Under MiCA, custody and transfer services do not in themselves constitute an ‘offering to the public’ or ‘seeking admission to trading’ of non-compliant asset-reference tokens or e-money tokens,” a spokesperson for the ESMA told Cointelegraph on March 4.
“These services are therefore not explicitly prohibited under Titles III and IV of MiCA,” the representative added.
Although the ESMA acknowledged that deposits and withdrawals of non-MiCA-compliant stablecoins are not prohibited, it stressed that European crypto asset services providers (CASPs) should “prioritize restricting services that facilitate the acquisition” of such assets, citing its guidance issued on Jan. 17, 2025.
Another area of confusion over MiCA?
Referring to its January guidance, the ESMA reiterated that CASPs are allowed to maintain “sell-only” services — or withdrawals — until March 31 to allow investors to exit their positions.
“Therefore, it is important that all CASPs carefully assess whether any of their services amount to an offer to the public under MiCA,” the agency told Cointelegraph.
ESMA’s confirmation that MiCA does not explicitly restrict USDt custody and transfers — while also advising CASPs to halt withdrawals after March 31 — adds to ongoing confusion over MiCA compliance.
Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, has previously highlighted that MiCA-triggered USDt delistings have been subject to many debates.
The confusion over MiCA implications for non-MiCA-compliant stablecoins is not the only area of debate regarding Europe’s new crypto regulations.
Many industry observers have previously pointed to compliance questions arising from MiCA not addressing crucial industry sectors, such as tokenized real-world assets, cryptocurrency staking and others.
“ESMA and National Competent Authorities are closely monitoring market developments continuously to ensure an orderly transition to the MiCA regime,” a spokesperson for ESMA said.
@ Newshounds News™
Source: CoinTelegraph
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RIPPLE-BACKED NON-PROFT LAUNCHES TO EDUCATE AMERICANS ON CRYPTO
The National Cryptocurrency Association, a new non-profit organization dedicated to enhancing Americans’ understanding of cryptocurrencies, officially launched today.
The NCA has a mission of promoting crypto literacy and safe adoption nationwide in the United States.
Backed by a $50 million grant from Ripple XRP, a leading blockchain company, the NCA aims to demystify cryptocurrencies and serve as a comprehensive resource for individuals interested in using, holding, or learning more about digital assets.
“Crypto going mainstream is no longer a question of ‘if’ but ‘when’,” said Stuart Alderoty, President of the NCA. “Millions are already benefiting from crypto, making it quicker and easier to shop online, send money anywhere in the world, create apps, art, and games, or build financial futures. We’re giving a voice to users from all walks of life and serving as a guide for how to use crypto responsibly.”
The NCA website offers guidance and questionnaires for those interested in entering or investing in cryptocurrency. It features stories of everyday cryptocurrency holders and provides conversational advice for beginners.
Crypto poll findings
To assess current crypto engagement, the NCA partnered with Harris Poll to survey 10,000 U.S. cryptocurrency holders. The findings revealed that 81% are interested in learning more about the future of crypto.
Additionally, one in five American adults already use cryptocurrencies, with 76% of users reporting positive impacts on their lives, including increased financial independence and opportunities for personal growth.
The survey also highlighted diverse applications of cryptocurrencies among users:
▪39% use it for shopping
▪32% have bought, sold, or used NFTs
▪31% send crypto to family
“The opportunity for crypto — especially in the US — is now stronger than ever,” said Brad Garlinghouse, CEO of Ripple, emphasizing the timeliness of the NCA’s mission.
The NCA plans to provide educational resources, including easy-to-understand explainers and real stories from everyday people using crypto, to bridge the knowledge gap and promote responsible usage.
@ Newshounds News™
Source: CryptoNews
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