#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, which would benefit compliant stablecoins like Circle's EURC, while posing challenges for non-compliant ones like Tether's EURT. Tether has 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 recent research report, JPMorgan pointed out that MiCA regulations require stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will give compliant stablecoins, such as Circle's EURC, an advantage in the regulated market. Non-compliant stablecoins, such as Tether's EURT, face challenges and may even be forced to stop issuing or withdraw from EU exchanges. Although Tether remains the "dominant force" in the global stablecoin market, its 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 regulations will provide a more regulated regulatory environment for the development of euro-denominated stablecoins and drive their application in the EU market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins.
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will give compliant stablecoins an advantage.
Non-compliant stablecoin issuers such as Tether will face challenges, such as obtaining trading licenses and holding reserves in Europe, which could lead to their exit from the EU market.
The implementation of MiCA regulation may lead to a more regulated and stable euro-denominated stablecoin market.