#EU's 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 drive 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 encourage EU exchanges to adjust their products and favor MiCA-compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, like Tether, face challenges. For instance, Tether has discontinued its EURT stablecoin and delisted from several 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 MiCA regulation, which came into effect on December 30th in the EU, could potentially drive 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, favoring compliant stablecoins like Circle's EURC. Non-compliant stablecoins, such as Tether, face challenges, as evidenced by Tether's forced discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, indicates its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA could foster the growth of euro-denominated stablecoins and drive greater compliance within the stablecoin market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins, as only compliant stablecoins can be used as trading pairs in regulated markets.
MiCA regulations require stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will pose challenges for non-compliant stablecoins.
MiCA regulations could lead to more power for compliant stablecoins, such as Circle's EURC, while non-compliant stablecoins like Tether's EURT face the risk of being delisted.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU.