#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, such as Circle's EURC. Non-compliant stablecoins like Tether face challenges, as evidenced by the discontinuation of its EURT stablecoin and its delisting from multiple EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its 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 research report, JPMorgan pointed out that MiCA regulations require stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will give compliant stablecoin issuers an advantage, while non-compliant issuers like Tether face challenges. Tether has already discontinued its euro stablecoin EURT and delisted from multiple EU exchanges, indicating the impact of MiCA regulations on stablecoin issuer compliance. Although Tether remains a "dominant force" in the global stablecoin market, it is widely used in less regulated markets like Asia, and its investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU. The implementation of MiCA regulations will drive the development of euro-denominated stablecoins and bring new opportunities to the European financial 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
MiCA regulation may give compliant stablecoins like Circle's EURC an advantage, while non-compliant stablecoins like Tether's EURT face challenges
Tether and other stablecoin issuers may maintain their presence in the EU by investing in MiCA-compliant stablecoin issuers