#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, posing challenges for non-compliant issuers like Tether while giving an advantage to compliant ones like Circle's EURC. Tether has discontinued its EURT stablecoin and delisted from multiple EU exchanges. Despite this, Tether remains the "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers like Quantoz Payments 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 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 like Tether, on the other hand, face challenges. For instance, Tether has discontinued its EURT stablecoin and delisted from several EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers like StablR and Quantoz Payments 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 EU 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, which will benefit compliant stablecoins, such as Circle's EURC
MiCA regulation may lead to non-compliant stablecoins, such as Tether's EURT, facing challenges, or even being forced to exit the EU market
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU