In the ever-evolving world of cryptocurrency, regulatory changes and executive shake-ups are making headlines. As the European Union’s Markets in Crypto-Assets Regulation (MiCA) approaches its first compliance deadline, major exchanges like Bitstamp and Uphold are delisting popular stablecoins to adhere to the new rules. Binance, too, is revamping its stablecoin strategy, classifying them into “regulated” and “unauthorized” categories. Amidst these regulatory shifts, Jump Crypto’s president has stepped down, and Animoca Brands is eyeing a return to public markets. Dive into this week’s Crypto Biz to stay updated on these pivotal developments and more.

MiCA Compliance Deadline Approaches: Major Stablecoins Delisted

The first deadline for complying with the European Union’s Markets in Crypto-Assets Regulation (MiCA) is fast approaching, leading to significant changes in the crypto landscape. On June 26, Bitstamp announced the delisting of Tether’s euro-pegged stablecoin, EURT, to comply with the new rules. Bitstamp was one of the first exchanges to list EURT back in 2021. Similarly, Uphold recently informed its European users that it would no longer support six popular stablecoins: Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD).

Binance has also adjusted its stablecoin strategy in response to MiCA. The exchange is now categorizing stablecoins into “regulated” and “unauthorized” coins based on their compliance with the new regulations. Coins labeled as “unauthorized” will be available on its platform in a “sell-only” mode. Binance noted that only a few stablecoins currently meet MiCA requirements.

The MiCA regulation will be implemented in two phases, starting on June 30, 2024, and fully coming into force by December 30, 2024. The framework classifies crypto assets into three main categories: electronic money tokens, asset-referenced tokens, and other crypto assets such as utility tokens.

Under MiCA, stablecoins are considered a concern for monetary sovereignty and financial stability. Currently, stablecoins have a market capitalization of over $163 billion. “With clear rules and guidelines, the regulation will provide the investor protections needed while contributing to financial stability and market integrity across the EU,” said Olivier Carré, deputy managing partner at PwC Luxembourg.

However, some crypto firms have criticized the European regulation. “Very few banks accept this type of business in Europe. It’s already very difficult to get just one!” said Tether CEO Paolo Ardoino during an interview in May, referencing stablecoin reserve requirements of 60% in cash deposits at several banks.

Jump Crypto President Steps Down Amid CFTC Investigation

Kanav Kariya, president of Jump Crypto, has resigned amid an investigation by the United States Commodity Futures Trading Commission (CFTC). Jump Crypto is the digital asset subsidiary of Jump Trading. According to Kariya’s social media announcement, he intends to focus on personal relationships and reading while searching for his next venture. Jump Crypto has been involved in several controversies, including the Wormhole bridge hack in 2022, the collapse of the Terra ecosystem, and concerns about exposure to FTX.

Kariya's resignation marks a significant leadership change for Jump Crypto, which has been navigating turbulent waters in the crypto industry. The CFTC investigation adds another layer of complexity to the company's operations and future prospects.

Animoca Brands Plans Return to Stock Market by 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 friendlier jurisdictions, specifically analyzing Hong Kong and the Middle East. Animoca has been holding meetings with investment banks but has not chosen a location or hired an adviser. Back in March 2020, the ASX delisted Animoca after expressing concerns about its compliance with listing rules, specifically those relating to investments in crypto and blockchain-related businesses.

Animoca Brands' potential return to the stock market could provide a significant boost to its growth and expansion plans. The company has been a major player in the gaming and metaverse sectors, and a successful public listing could attract more investors and strategic partners.

Riot Platforms Seeks to Replace Bitfarms Board Members

Riot Platforms is making moves to replace three Bitfarms board members, claiming a 14.9% stake in the company. Previously, Bitfarms announced a shareholder rights plan to prevent further stock purchases by Riot. Rather than continue purchasing Bitfarm shares, Riot planned to replace three of the company’s board members and “remove any additional director” appointed after its announcement. The plan to overhaul the Bitfarms’ board was the latest development in Riot’s plans to move in on Bitfarms. In May, Riot offered to acquire the mining firm for $950 million.

The corporate dispute between Riot and Bitfarms highlights the competitive nature of the crypto mining industry. As companies vie for market dominance, boardroom battles and strategic acquisitions are becoming more common.

Nubank Integrates Bitcoin Lightning Network for 100 Million Customers

Brazilian neobank Nubank has partnered with Lightspark to offer the Bitcoin Lightning Network to its 100 million customers in Latin America. Lightspark will also integrate the Universal Money Address standard, a payment system built on top of Lightning that gives users an email-like address to transfer money. Lightspark has been building Lightning Network infrastructure for enterprises since it was co-launched in 2022 by former PayPal president David Marcus.

Nubank's integration of the Bitcoin Lightning Network represents a significant step forward for crypto adoption in Latin America. By offering faster and cheaper Bitcoin transactions, Nubank is positioning itself as a leader in the region's burgeoning crypto market.

Conclusion

The cryptocurrency landscape is undergoing significant changes as regulatory frameworks like MiCA come into play and major industry players make strategic moves. The delisting of stablecoins by exchanges like Bitstamp and Uphold, Binance's revamped stablecoin strategy, and the resignation of Jump Crypto's president are just a few of the developments shaping the industry. Meanwhile, Animoca Brands' potential return to the stock market and Nubank's integration of the Bitcoin Lightning Network highlight the ongoing innovation and growth in the crypto space.

Stay tuned to Crypto Biz for the latest updates and insights into the business behind blockchain and crypto. Whether you're an investor, a crypto enthusiast, or a blockchain professional, staying informed is crucial in this fast-paced industry.