#EU New Regulations Boost Euro Stablecoin Development#

The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA rules require 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 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 Asian markets. Tether's investments in MiCA-compliant stablecoin issuers like Quantoz Payments and StablR indicate its commitment to maintaining a presence in the EU. The implementation of MiCA regulations will provide a more stringent regulatory framework for euro-denominated stablecoins and could potentially drive further development of euro stablecoins.