#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 drive 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, but it is still maintaining its presence in the EU market by investing in MiCA-compliant stablecoin issuers, such as StablR.
Ace Hot Topic Analysis
Analysis
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 its delisting from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in less regulated markets like Asia. Tether's investments in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, indicate its commitment to maintaining a presence in the EU. In conclusion, the MiCA regulation will drive the development of euro-denominated stablecoins and could lead to a more regulated stablecoin market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins.
MiCA regulations require stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will give compliant stablecoins an advantage.
Non-compliant stablecoin issuers like Tether may face challenges, such as ceasing to issue euro stablecoins or being delisted from EU exchanges.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.