#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 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 already discontinued its EURT stablecoin and delisted it 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 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, which 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 already discontinued its EURT stablecoin and delisted from several EU exchanges, indicating the substantial impact of MiCA regulations on the stablecoin market. Nevertheless, Tether remains the "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, demonstrate its commitment to maintaining a presence in the EU market. In conclusion, the implementation of MiCA regulations could drive the development of euro-denominated stablecoins and create new opportunities for compliant stablecoin issuers.
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 will prompt EU exchanges to adjust their products, benefiting compliant stablecoins, such as Circle's EURC
MiCA regulation will pose challenges to non-compliant stablecoins, such as Tether's EURT, potentially leading to their delisting or discontinuation
Tether and other stablecoin issuers will need to hold substantial reserves in European banks and obtain trading licenses to operate in the EU market