#EU's New Regulations Boost Euro Stablecoin Development#
Hot Topic Overview
Overview
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This will prompt EU exchanges to adjust their offerings and favor compliant euro stablecoins, such as Circle's EURC, while posing challenges for non-compliant stablecoins like Tether's EURT. Tether has already discontinued its EURT stablecoin and delisted it from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The implementation of the EU's new MiCA regulation could promote the development of euro-denominated stablecoins. In a research report, JPMorgan pointed out that MiCA stipulates that only compliant stablecoins can be used as trading pairs in regulated markets, prompting EU exchanges to adjust their products. This regulation benefits compliant stablecoins, such as Circle's EURC, while posing challenges to non-compliant stablecoins, such as Tether's EURT. MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. Tether, unable to meet these requirements, discontinued its EURT stablecoin, leading to the delisting of USDT from multiple EU exchanges. Despite the challenges, Tether remains a "dominant force" in the global stablecoin market and is widely used in less restrictive Asian markets. Tether's investments in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, indicate its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA could drive the development of euro-denominated stablecoins and create a more level playing field for compliant stablecoins.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins, as only compliant stablecoins can be used as trading pairs in regulated markets.
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses, posing challenges for non-compliant stablecoins like Tether.
MiCA regulation empowers compliant stablecoins like Circle's EURC, while non-compliant stablecoins like Tether's EURT face challenges.
Tether's investment in MiCA-compliant stablecoin issuers demonstrates its commitment to maintaining a presence in the EU.