#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, which will prompt 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 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 MiCA regulation, which came into effect on December 30th in the EU, could potentially drive 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. This will prompt EU exchanges to adjust their offerings and favor MiCA-compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, like Tether, face challenges. For instance, Tether was forced to discontinue its EURT stablecoin and delist from several EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its investments in MiCA-compliant stablecoin issuers StablR and Quantoz Payments indicate its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA will create a more regulated and secure market environment for euro-denominated stablecoins, potentially fostering their growth.
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 will pose challenges for non-compliant stablecoins.
Stablecoin issuers like Tether have stopped their euro stablecoins due to MiCA regulation, leading to the delisting of USDT from multiple EU exchanges.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU.