#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 has stated that the MiCA regulation, which requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, will encourage EU exchanges to adjust their offerings and favor compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, like Tether, face challenges, as evidenced by Tether's discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Despite this, 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 implementation of the EU's new MiCA regulation could drive the development of euro-based stablecoins. In a recent 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. 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 regulations will create a more regulated and stable environment for the development of euro-based stablecoins, potentially driving their adoption in the EU 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