#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. In a research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This will likely prompt EU exchanges to adjust their offerings, giving an advantage to compliant stablecoins like Circle's EURC while posing challenges for non-compliant ones like Tether's EURT. Tether has discontinued its EURT stablecoin and delisted it from multiple EU exchanges, but it remains present 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 promote the development of euro-denominated 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, while non-compliant stablecoins like Tether's EURT face challenges. Tether has already discontinued its EURT stablecoin and delisted from multiple EU exchanges, indicating the substantial impact of MiCA regulations on the stablecoin market. Although Tether remains a "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers, such as StablR and Quantoz Payments, demonstrates its commitment to maintaining a presence in the EU. Overall, 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
European Union 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
This will benefit compliant stablecoin issuers, such as Circle's EURC
MiCA regulation may pose challenges to non-compliant stablecoin issuers, such as Tether's EURT, and may even force them to exit the EU market
Tether and other stablecoin issuers are investing in MiCA-compliant stablecoin issuers, indicating their commitment to maintaining a presence in the EU