The Markets in Crypto-Assets Regulation (MiCA) of the European Union (EU) has partially come into effect, with new rules regarding stablecoins taking effect on June 30. In response, several cryptocurrency exchanges operating in the EU, including Uphold, Binance, Kraken, and OKX, have already started delisting stablecoins like Tether (USDT). Bitstamp is also planning to delist Euro Tether (EURT). Jón Egilsson, former chairman of the supervisory board of the Icelandic Central Bank, believes that noncompliant stablecoin issuers may exit the EU market entirely, as demand for euro-backed stablecoins grows in European markets. The MiCA regulations affecting crypto asset service providers will be introduced in December 2024.
The Internal Revenue Service (IRS) in the United States has released its final draft of new reporting requirements for crypto brokers. Decentralized exchanges and self-custody wallets will not be subject to these rules. The IRS stated that it needed more time to consider the nuances of completely decentralized networks after reviewing comments and complaints from industry respondents. However, stablecoins and tokenized real-world assets will not be exempt from the reporting requirements and will be treated the same as other digital assets. IRS Commissioner Danny Werfel emphasized the need to close the tax gap posed by digital assets 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, allowing financial entities to conduct transactions with digital assets in an effort to modernize its payment system. While the recently approved regulations permit banks to transact in cryptocurrencies through approved electronic channels, the central bank clarified that cryptocurrencies are not accepted as legal tender. Banco Central de Bolivia also plans to create an awareness program for the general public under its Economic and Financial Education Plan. This program aims to inform the public about the potential risks associated with cryptocurrencies and how to manage them responsibly.
Coinbase has filed lawsuits against the United States Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) for noncompliance with Freedom of Information Act (FOIA) requests. The FOIA requests sought information from the SEC regarding its view on Ethereum and the blockchain’s shift to a proof-of-stake consensus mechanism. Coinbase also requested records related to Ethereum 2.0 and previous investigations involving Zachary Coburn and Enigma MPC. The lawsuits allege that the actions of the SEC and FDIC were a coordinated attempt to cut off digital-asset firms from essential banking services.