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Seeds of Wisdom
EU ENFORCES STRICT STABLECOIN REGULATIONS, ORDERS REMOVAL OF NON-COMPLIANT TOKENS
The EU regulator has ordered all crypto exchanges to remove unauthorized stablecoins like Tether by March 2025, with a ban on new acquisitions starting January 2025, as part of its comprehensive stablecoin regulation implementation.
▪️EU regulator ESMA mandates crypto exchanges remove non-compliant stablecoins by end of Q1 2025
▪️Tether’s USDT will be affected as it lacks EU authorization and has no plans for MiCA compliance
▪️Exchanges must stop enabling clients to acquire unauthorized stablecoins by January’s end
▪️Clients holding non-compliant stablecoins have until March to convert to compliant alternatives
▪️Major exchanges like Coinbase have already begun restricting services for non-compliant stablecoins
The European Securities and Markets Authority (ESMA) has issued a clear directive to the 27 EU member states requiring the removal of non-compliant stablecoins from trading platforms.
The announcement sets a firm deadline of Q1 2025 for full compliance with the EU’s stablecoin regulations.
Under the new requirements, crypto asset service providers (CASPs) must cease offering trading services for unauthorized asset-referenced tokens (ARTs) and electronic money tokens (EMTs). This mandate specifically targets stablecoins that lack proper EU authorization, notably affecting major players like Tether’s USDT.
The timeline established by ESMA requires exchanges to stop enabling new acquisitions of unauthorized stablecoins by the end of January 2025. Current holders of these assets will have until the end of March to convert their holdings to compliant alternatives, ensuring an orderly transition in the market.
Leading cryptocurrency exchange Coinbase has already taken steps to align with these requirements. The company restricted services related to non-compliant stablecoins for its Retail, Exchange, and Prime Vault customers across its European operations starting December 13, 2024.
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Tether, one of the largest stablecoin issuers globally, has shown its response to the regulatory pressure by discontinuing its euro stablecoin, EURT, in November. The company has not obtained the necessary e-money license to operate within the EU, unlike competitor Circle, which secured its license in July.
The European Commission has provided additional clarity on the regulations through Peter Kerstens, an advisor involved in drafting the legislation. Kerstens emphasized that the rules are straightforward: unauthorized crypto-assets cannot be listed, regardless of their underlying currency.
Questions had arisen in the crypto community about whether the regulations would affect stablecoins that were already listed before the MiCA regulations came into force. The Commission’s clarification confirms that pre-existing listings are not exempt from the new requirements.
The regulatory framework requires that any entity offering or seeking admission for stablecoins within the EU must either be a bank or an e-money institution and publish a white paper. Third parties may offer these tokens only with the issuer’s consent, and the issuer must still maintain proper authorization.
ESMA’s clarification came after the authority itself sought guidance from the European Commission, highlighting the complexity of implementing these regulations.
This consultation process has resulted in a clear interpretation: crypto exchanges qualify as third parties seeking admission and must ensure their listed stablecoins comply with all regulatory requirements.
For crypto exchanges operating in the EU, this means conducting a thorough review of their stablecoin offerings. They must verify that each listed stablecoin either has proper authorization or must be removed from their trading platforms by the specified deadline.
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The regulations also address concerns about monetary sovereignty, particularly regarding non-Euro stablecoins. However, these rules primarily focus on real-world payments rather than crypto trading activities.
EU authorities are emphasizing the importance of an orderly transition to prevent market disruption. Exchanges are expected to communicate clearly with their users about the upcoming changes and provide guidance on converting non-compliant stablecoin holdings.
Industry observers note that these measures align with the EU’s broader strategy to create a regulated and secure cryptocurrency market. The clear deadlines and requirements aim to provide stability and protection for market participants.
Current holders of non-compliant stablecoins are advised to stay informed about their exchange’s compliance timeline and prepare for the necessary conversions before the March deadline. Exchanges are expected to provide detailed instructions and support for this transition process.
@ Newshounds News™
Source: Blockonomi
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CIRCLE STRENGTHENS USDC ECOSYSTEM WITH HASHNOTE ACQUISITION AND TOKENIZED FUNDS
▪️ Circle’s acquisition of Hashnote and integration of USDC and USYC into the Canton Network strengthen its position in tokenized finance, bridging DeFi with traditional markets.
▪️ Circle’s innovations and increased demand for tokenized assets could drive Ethereum adoption, reinforcing its role as a foundational blockchain in global finance.
After Circle donated 1 million USDC to Trump’s inaugural committee, CNF highlighted this as a significant step in showcasing stablecoin acceptance in mainstream politics. Circle’s next move, the acquisition of Hashnote, further expands its influence in tokenized asset growth and the $48 billion USDC stablecoin ecosystem.
Hashnote, a leader in tokenized real-world assets and creator of USYC, a $1.3 billion tokenized money market fund, is a strategic acquisition that positions Circle at the forefront of bridging blockchain technology with traditional finance. The acquisition was announced in a tweet, emphasizing its positive implications.
The integration of USYC with Circle’s platform enables it to serve as yield-bearing collateral on major digital asset exchanges and institutions, strengthening both the USDC and USYC ecosystems.
Strengthening USDC and USYC Ecosystems
Circle plans to integrate USDC and USYC into the Canton Network, a blockchain designed for real-world asset transactions backed by leading financial institutions.
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A tweet from Circle highlighted the partnership with DRW, a prominent traditional and crypto market player via its affiliate Cumberland, as a critical step in enhancing institutional adoption and operational efficiency in digital finance.
The partnership with DRW, a major player in traditional and crypto markets via its affiliate Cumberland, is a huge unlock for supporting USDC and USYC and elevating institutional adoption and operational efficiencies in digital finance.
This integration provides seamless convertibility between cash (USDC) and yield-bearing assets (USYC), ensuring liquidity and bridging decentralized finance (DeFi) with traditional financial markets. Circle’s collaboration with Cumberland also improves liquidity and collateral management for institutional digital asset transactions.
Circle CEO Jeremy Allaire emphasized the company’s commitment to shaping the future of tokenized finance by uniting liquid payment systems with yield-bearing assets. This acquisition marks a significant step toward creating a unified system where tokenized cash and money markets coexist, driving adoption across global trading platforms.
Implications for Ethereum’s Ecosystem and Market Value
These developments have substantial implications for Ethereum, the blockchain supporting both USDC and USYC. As Circle strengthens its tokenized asset ecosystem, demand for Ethereum’s network is likely to rise due to increased transaction volumes and DeFi integrations.
@ Newshounds News™
Source: Crypto News Flash
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Source: Dinar Recaps
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BRICS: 40 COUNTRIES LOOK TO DITCH THE US DOLLAR
BRICS member China is looking to convince 40 new countries to use the Chinese yuan for cross-border transactions and not the US dollar. The C-------t country is aiming to capitalize on the growing de-dollarization trend and is pushing the Chinese yuan for trade.
For the uninitiated, the usage of the Chinese yuan for trade settlements has surged 4.6% in 2024, compared to 2% in 2019. The currency usage has more than doubled in six years and is threatening the prospects of the US dollar.
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If the US fails to import the dollar overseas, it would return to the homeland leading to inflation. Therefore, the USD needs to maintain its top position in the currency markets to sustain the American economy and keep prices lower.
BRICS: CHINA SIGNING AGREEMENTS WITH 40 COUNTRIES TO USE THE CHINESE YUAN, NOT US DOLLAR
The People’s Bank of China (PBOC) has signed bilateral trade deals with over 40 countries to use the Chinese yuan for trade settlements. The trade agreement is with the central banks of developing countries and initiates currency swaps.
The overall scale of the currency swap agreement stands at 4.16 trillion yuan, equivalent to $586 billion. The development gives the BRICS country China power through the currency market and dampens the US dollar’s global prospects.
China, Russia, and Iran are the three BRICS countries that are aggressively looking to end dependency on the US dollar. They are forging new trade deals and rewriting policy settlements that prefer using local currencies.
The dynamics of de-dollarization are advancing as more countries are willing to trade in the national currencies. China is leveraging the situation and taking advantage of the White House weaponizing the US dollar.
@ Newshounds News™
Source: Watcher Guru
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BANK OF AMERICA READY FOR CRYPTO PAYMENTS — DECODING HOW BANKING WILL CHANGE FOREVER
Is the banking industry prepared for the disruption crypto payments might cause, and if Bank of America leads the charge, what lasting changes can we expect in how banks, businesses, and consumers interact?
Bank of America CEO advocates for crypto…
▪️Bank of America CEO advocates for crypto payments
▪️Bank of America’s twofold relationship with crypto
▪️How U.S. institutions are stepping into crypto
▪️Decoding the probable impact
Bank of America CEO advocates for crypto payments
The banking and crypto worlds have often seemed like two ships passing in the night — acknowledging each other’s existence but rarely finding common ground.
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However, Bank of America CEO Brian Moynihan has now thrown his weight behind the idea of integrating crypto payments into the U.S. financial system — but only if regulators give the green light.
Speaking at the prestigious World Economic Forum in Davos, Switzerland, Moynihan addressed a question that has long lingered over the industry — what would it take for banks to embrace crypto as a payment method?
“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in h-----n the transactional side of it,”Moynihan remarked during an interview with CNBC.
“If you go down the street here and buy lunch, for example, you could pay with Visa, Mastercard, a debit card, Apple Pay, and so on. In that sense, cryptocurrency would just be another form of payment,” Moynihan explained.
He also discussed a growing realization that crypto — especially stablecoins backed by traditional assets like the U.S. dollar — could seamlessly integrate into existing payment networks.
“If it’s a stablecoin-type of dollar-backed crypto…and our consumers actually want to use it, we think there’s value there,” Moynihan said, hinting that banks could view these tokens as a safer entry point into the crypto payments space.
However, Moynihan did not touch upon the notion of cryptocurrencies like Bitcoin as an investment or store of value, stating that it is “really a separate question.”
Bank of America’s twofold relationship with crypto
Bank of America has not always been optimistic about crypto. For years, the institution’s top executives voiced strong concerns, often portraying crypto as a challenge to the transparency and security upon which the banking system relies.
Back in 2018, BofA’s Chief Technology Officer, Cathy Bessant, expressed sharp criticism of crypto’s fundamental structure, stating:
“As a payment system, I think it’s troubling because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort.”
She labelled crypto as the “antithesis” of transparency, mentioning how its pseudonymous nature made it difficult for authorities to “catch bad guys.”
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However, over the years, BofA’s stance has drastically evolved. The bank has invested heavily in blockchain, recognizing its potential to enhance efficiency, reduce costs, and modernize financial systems.
“We have hundreds of patents on blockchain already,” CEO Brian Moynihan remarked recently in Davos.
The bank’s interest in crypto itself has also grown. In 2024, BofA’s Merrill Lynch added Bitcoin exchange-traded funds to its brokerage platforms for eligible wealth management clients.
The U.S. Securities and Exchange Commission recently announced the creation of a crypto task force aimed at establishing a “sensible regulatory path,” which could provide the necessary guidance for banks like BofA to integrate crypto payments into their operations.
@ Newshounds News™
Read more: Crypto News
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Source: Dinar Recaps
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