The European Union’s Markets in Crypto-Assets Regulation (MiCA) has partially come into effect, with new rules regarding stablecoins being implemented on June 30. In response to these regulations, several cryptocurrency exchanges, including Uphold, Binance, Kraken, OKX, and Bitstamp, have started delisting stablecoins such as Tether and Euro Tether. Jón Egilsson, former chairman of the supervisory board of the Icelandic Central Bank, suggests that noncompliant stablecoin issuers may exit the EU market entirely, leading to a shift towards euro-backed stablecoins. The MiCA regulations affecting crypto asset service providers will be introduced in December 2024.
The United States Internal Revenue Service (IRS) has released its final draft of new reporting requirements for crypto brokers. Decentralized exchanges and self-custody wallets are exempt from these rules. The IRS acknowledged the industry’s concerns and decided to take more time to consider the complexities of completely decentralized networks. Stablecoins and tokenized real-world assets are not exempt and will be treated the same as other digital assets. IRS Commissioner Danny Werfel emphasized the need to address the tax gap and potential noncompliance from high-net-worth individuals.
Bolivia’s central bank, Banco Central de Bolivia, has lifted its ban on Bitcoin and crypto payments to modernize its payment system. Financial entities are now allowed to conduct transactions with digital assets through approved electronic channels. However, cryptocurrencies are not accepted as legal tender, and the central bank plans to educate the public about the risks associated with cryptocurrencies.
Coinbase has filed lawsuits against the SEC and FDIC for noncompliance with Freedom of Information Act (FOIA) requests. The FOIA requests sought information on the SEC’s view on Ethereum, specifically its shift to a proof-of-stake consensus mechanism. Coinbase requested records related to Ethereum 2.0 and previous investigations. The lawsuits claim that the SEC and FDIC’s actions are an attempt to cut off digital-asset firms from essential banking services.