#EU 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. JPMorgan has stated that the MiCA regulation, which requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, will encourage EU exchanges to adjust their offerings and favor compliant stablecoins like Circle's EURC. Non-compliant stablecoins, such as Tether's EURT, face challenges. Tether has already discontinued its EURT stablecoin and delisted it from several 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 demonstrates 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. This will give compliant stablecoins, such as Circle's EURC, an advantage in the regulated market, while non-compliant stablecoins like Tether's EURT face challenges. Tether has discontinued its EURT stablecoin and delisted from multiple EU exchanges, but it is still trying to maintain its presence in the EU market by investing in MiCA-compliant stablecoin issuers, such as StablR and Quantoz Payments. Although Tether still dominates in less regulated markets like Asia, the implementation of MiCA regulations will push the euro-denominated stablecoin market towards compliance and provide greater growth opportunities for compliant stablecoin issuers like Circle.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins, as only compliant stablecoins can be used as trading pairs in regulated markets.
MiCA regulations require stablecoin issuers to hold large reserves in European banks and obtain trading licenses, posing challenges for non-compliant stablecoins like Tether.
MiCA regulations have empowered 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.