#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 states that the MiCA regulation requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, posing challenges for non-compliant stablecoins like Tether, while empowering compliant stablecoins like Circle's EURC. Tether has discontinued its EURT stablecoin and delisted from multiple EU exchanges. Despite this, Tether remains the "dominant force" in the global stablecoin market and has demonstrated its commitment to maintaining a presence in the EU by investing in MiCA-compliant stablecoin issuers.
Ace Hot Topic Analysis
Analysis
The implementation of the EU's new MiCA regulation could boost the development of euro-denominated stablecoins. In a 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 regulated 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 several EU exchanges, but its investment in MiCA-compliant stablecoin issuers indicates its willingness to remain in the EU market. Although Tether remains a dominant force in the global stablecoin market, its influence remains significant in less regulated markets such as Asia. 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, which poses challenges for non-compliant stablecoins like Tether.
Stablecoin issuers like Tether may need to adjust their operations to comply with MiCA standards, such as discontinuing their non-compliant euro stablecoins and investing in MiCA-compliant stablecoin issuers.
Despite the challenges faced by stablecoin issuers like Tether, Tether remains the "dominant force" in the global stablecoin market and is widely used in less restrictive Asian markets.