#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, which will prompt EU exchanges to adjust their offerings and favor compliant stablecoins like Circle's EURC. Non-compliant stablecoins, such as Tether's EURT, face challenges. Tether has discontinued its EURT stablecoin and delisted it from multiple EU exchanges. Nevertheless, 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 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 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 investments in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, also indicate its continued presence in the EU market. In conclusion, the implementation of MiCA regulations will drive the development of the euro-denominated stablecoin market and could encourage more compliant stablecoin issuers to enter 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, which will pose challenges for non-compliant stablecoins
MiCA regulation may drive compliant stablecoins, such as Circle's EURC, to gain market advantage
Tether and other stablecoin issuers may maintain their presence in the EU by investing in stablecoin issuers that meet MiCA standards