#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. In a research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This will encourage EU exchanges to adjust their offerings and favor compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, like Tether, face challenges. For instance, Tether has discontinued its EURT stablecoin and delisted 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 indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The entry into force 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 prompt EU exchanges to adjust their products and benefit compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, such as Tether, face challenges, such as Tether being forced to discontinue its EURT stablecoin and delisting from multiple EU exchanges. Although Tether remains the "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers, such as StablR, indicates its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA regulations will 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, posing 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 compliant stablecoins like Circle's EURC gain strength.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.