#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 research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will encourage EU exchanges to adjust their offerings and favor compliant stablecoins like Circle's EURC. Non-compliant stablecoins like Tether face challenges, as evidenced by Tether's discontinuation of its EURT stablecoin and delisting 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 MiCA regulation, which came into effect on December 30, 2023 in the European Union, could promote the development of euro-denominated stablecoins. In a research report, JPMorgan pointed out that the MiCA regulation requires only compliant stablecoins to be used as trading pairs in regulated markets, prompting EU exchanges to adjust their products. The regulation requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This has posed challenges for non-compliant stablecoin issuers like Tether, leading to the discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. However, Tether remains the "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. The implementation of the MiCA regulation could drive the development of euro-denominated stablecoins and bring new opportunities to the EU financial market.
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, which poses challenges for non-compliant stablecoins like Tether.
Stablecoin issuers like Tether have been forced to discontinue their euro stablecoins and delist from multiple EU exchanges, while MiCA-compliant stablecoin issuers have gained an advantage.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.