EU MiCA stablecoin regulations come into effect: Law Decoded

The European Union’s Markets in Crypto-Assets Regulation (MiCA) came into partial effect in June, with new rules concerning stablecoins coming into force on June 30. 

Crypto exchanges may delist certain noncompliant stablecoins or restrict services for EU and European Economic Area (EEA)-based users. Many crypto exchanges operating within the EU have already taken action ahead of the new rules entering into force.

Cryptocurrency exchanges Uphold, Binance, Kraken and OKX have also started delisting stablecoins such as Tether (USDT). Bitstamp also plans to delist Euro Tether (EURT).

Speaking to Cointelegraph, Jón Egilsson, former chairman of the supervisory board of the Icelandic Central Bank, said noncompliant stablecoin issuers could potentially exit the EU market entirely, with a shift toward euro-backed stablecoins as demand picks up in European markets.

The MiCA regulations impacting crypto asset service providers will be introduced in December 2024.

IRS reveals final regulations for crypto broker rules

The United States Internal Revenue Service (IRS) revealed its final draft of the new crypto broker reporting requirements. 

Decentralized exchanges and self-custody wallets will not be subject to the new reporting rules. In the recent update, the IRS explained that it reviewed the widespread comments and complaints from industry respondents, ultimately deciding it needed “more time to consider the nuances” of completely decentralized networks.

Stablecoins and tokenized real-world assets were not exempt from the government agency’s new reporting requirements and will be treated the same as other digital assets.

In the wake of the new rule changes, IRS Commissioner Danny Werfel remarked on the need to close the tax gap posed by digital assets and potential noncompliance from high-net-worth individuals.

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Bolivia lifts ban on Bitcoin

Bolivia’s central bank, Banco Central de Bolivia, has lifted its ban on Bitcoin and crypto payments, allowing financial entities to conduct transactions with digital assets in a bid to modernize its payment system.

The recently approved regulations allow banks to transact in cryptocurrencies via approved electronic channels. However, the central bank clarified that cryptocurrencies are not accepted as forms of legal tender.

Under its Economic and Financial Education Plan, Banco Central de Bolivia also plans to create an awareness program for the general public. This plan attempts to inform the general public about the possible risks associated with cryptocurrencies and how to manage them responsibly.

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Coinbase sues SEC, FDIC over FOIA noncompliance

Coinbase has filed lawsuits against the United States Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC). The lawsuits allege that the SEC and FDIC failed to comply with Freedom of Information Act (FOIA) requests submitted to the U.S. District Court for the District of Columbia.

The FOIA requests aimed at the SEC sought information on the federal agency’s view on Ethereum, specifically the blockchain’s shift to a proof-of-stake consensus mechanism.

Coinbase asked for records related to Ethereum 2.0 and previous investigations involving Zachary Coburn and Enigma MPC through its consultant firm, History Associates Inc.

The lawsuits describe the SEC’s and FDIC’s actions as “a coordinated attempt to cut off digital-asset firms from essential banking services.”

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