An overview of the latest EU crypto regulations under MiCA (Markets in Crypto-Assets) rules.
The European Union (EU) recently introduced new regulations for digital assets called MiCA (Markets in Crypto-Assets). These rules aim to create clear guidelines for how cryptocurrencies and related services should operate across EU member states. The main goals of MiCA are to protect consumers, increase market integrity, and foster innovation in a safer environment. As a result of these regulations, several changes will affect crypto exchanges and their users in Europe.
Key Changes Under MiCA
Restriction on Tether (USDT) Trading
One significant aspect of MiCA is the restriction on using Tether (USDT) for trading in the EU. According to this rule, European clients can no longer trade any spot pairs that involve USDT, such as BTC/USDT or ETH/USDT. However, users can still hold USDT on the platform if they already have it. Additionally, they can continue to use their USDT as collateral for trading on futures or perpetual markets if the platform offers that option.
To comply with EU requirements, we have removed the ability to create new spot and perpetual trades with USDT.
Transition to USD Coin (USDC)
In order to ensure smooth operations under these new regulations, we have decided to transition from USDT to USD Coin (USDC). USDC is a stablecoin pegged to the US dollar, similar to USDT, but it offers certain compliance advantages within the EU framework. This switch allows traders from Europe to continue trading with stablecoins without violating MiCA requirements.
Our team has worked hard to make this transition as straightforward as possible:
- All current spot or perpetual positions that use USDT can remain open.
- Users are free to hold or withdraw USDT.
- For new trading pairs, USDC will replace USDT.
Changes to Perpetual Trading Settlements
Another change involves perpetual (or derivatives) trading. Previously, perpetual trades on our exchange were settled in USDT, meaning profits and settlements were paid out in USDT. With the new MiCA rules, we have adjusted our system so that perpetual trades will now be settled in USDC.
This update only affects the currency in which your gains are distributed. The trading process itself remains the same. You can still open and close positions as usual, but your trading profits will be paid in USDC.
Supporting Our Users Through Change
We understand that regulatory changes can be confusing and sometimes inconvenient. However, these steps are necessary for us to continue providing services to users in the EU without interruption. At the same time, we want to ensure all users remain informed and confident while trading on our platform. Rest assured that we will keep you updated on any further developments as the cryptocurrency regulatory landscape evolves.
Summary
MiCA’s new rules focus on increased consumer protection and standardized practices for crypto services in the European Union.
Key Updates:
- Removed the ability for users to trade USDT spot pairs.
- Transitioned to USDC as a compliant stablecoin alternative.
- Updated perpetual trades to settle in USDC instead of USDT.
These updates do not change the overall functionality of your trading experience. If you have any questions about these updates or how they might affect you, please reach out to our support team.
If you’d like to learn more about the world of crypto, visit our blog at blog.millionero.com. Feeling ready? You can also trade spot and perpetuals on millionero.com.