#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 posing challenges for non-compliant stablecoins like Tether's EURT. Tether has 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, such as Quantoz Payments and StablR, indicate its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th in the EU, could drive the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA stipulates that only compliant stablecoins can be used as trading pairs in regulated markets, prompting EU exchanges to adjust their products and giving compliant stablecoins like Circle's EURC an advantage. On the other hand, non-compliant stablecoins like Tether's EURT face challenges as MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. Tether has therefore discontinued its EURT stablecoin and delisted it from several EU exchanges. Nevertheless, Tether remains the "dominant force" in the global stablecoin market and is widely used in less restrictive Asian markets. Tether's investment in MiCA-compliant stablecoin issuers like Quantoz Payments indicates its commitment to maintaining a presence in the EU. In conclusion, the MiCA regulation will drive the development of euro-denominated stablecoins and could lead to a shift in the stablecoin market landscape.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins.
MiCA regulations require stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will give compliant stablecoins an advantage.
MiCA regulations could pose challenges to non-compliant stablecoins, such as Tether's EURT, and even force them to exit the EU market.
Stablecoin issuers like Tether are investing in MiCA-compliant stablecoin issuers, indicating their commitment to maintaining a presence in the EU.