#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 believes that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses 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 it from several EU exchanges. Despite these challenges, 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 30th, could promote 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 prompt EU exchanges to adjust their products and give an advantage to compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, such as Tether, face challenges, as evidenced by Tether being forced to discontinue its EURT stablecoin and delisting from multiple EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, indicates its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA could drive the development of euro-denominated stablecoins and bring new opportunities to the European 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
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses
MiCA regulation may lead to compliant stablecoins (such as Circle's EURC) gaining an advantage, while non-compliant stablecoins (such as Tether's EURT) face challenges
Tether and other stablecoin issuers may maintain their presence in the EU by investing in stablecoin issuers that meet MiCA standards