EU Crypto Regulation Heralds New Digital Currencies Era
The EU crypto regulation, Markets in Crypto Assets (MiCA), heralds a new era for an industry that will provide access to about 18% of global crypto transaction volumes.
In an effort to create a framework across all European Union (EU) member states, MiCA mandated that from June 30 onwards, all stablecoin issuers hold an Electronic Money Institution (EMI) license. It imposed stringent compliance requirements on exchanges.
Some exchanges have adjusted their offerings to include only stablecoins that meet the EU crypto regulations. They want to maintain access to a potential market of 200 million plus when MiCA is fully applied by year’s end.
MiCA is part of the EU’s digital finance package designed to mitigate against crypto risks. It applies to crypto assets not covered by existing financial legislation, specifically stablecoins and crypto asset service providers.
This “is a huge milestone,” CEO of Circle, Jeremy Allaire, said. It brings” digital currency into mainstream scale and acceptance,” he said.
Crypto Market Cap YTD, source: TradingView
EU Crypto Regulation Prompts Crypto Exchanges, Stablecoin-Issuers Response
In response to MiCA, California-based exchange Coinbase (NASDAQ:COIN) will delist unauthorized stablecoins that do not comply with MiCA.
“We intend to restrict the provision of services with stablecoins that do not meet the MiCA requirements,” Brian Armstrong, Coinbase CEO, told CoinDesk on October 11.
Binance, the largest global cryptocurrency exchange, announced in early June that it won’t delist any unauthorized stablecoins on the spot. But it will limit their availability for European users “only on certain products,” it said.
PayPal (NASDAQ:PYPL) issued its own regulated stablecoin, PayPal USD (PYUSD), through Paxos on August 7, 2023. PayPal operates under an EU banking license in Luxembourg, which grants it business …
About The Author
