#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 points 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 like Tether face challenges, as evidenced by Tether's forced discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and enjoys widespread use 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 implementation of the EU's new MiCA regulation could promote 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 MiCA-compliant stablecoins, such as Circle's EURC, an advantage in the EU market, while non-compliant stablecoins like Tether's EURT face challenges. Tether has already discontinued its EURT stablecoin and delisted it from several 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 investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA regulations will drive the development of the EU stablecoin market and could lead to the emergence of more euro-denominated stablecoins.
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 would benefit compliant stablecoin issuers, such as Circle's EURC.
MiCA regulations could pose challenges for non-compliant stablecoin issuers, such as Tether's EURT, and even force them to exit the EU market.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.