Euro-Pegged Stablecoins in the EU: New Rules Reshape the Market

Euro-Pegged Stablecoins in the EU: New Rules Reshape the Market

What Happened?
The European Markets in Crypto-Assets (MiCA) regulation, which came into effect on December 30, 2024 is set to significantly impact the market for euro-pegged stablecoins. Under the new rules, only MiCA-compliant stablecoins can be used in trading pairs on regulated platforms, forcing crypto exchanges to revise their offerings.

Winners and Losers

• EURC by Circle: A leader in the market. This stablecoin meets MiCA requirements and is rapidly gaining popularity.
• EURT by Tether: Facing challenges. Due to non-compliance with the new regulations, the company halted EURT issuance in November, giving users 12 months to redeem their holdings.

Additionally, many European exchanges have delisted USDT, the largest dollar-pegged stablecoin by market capitalization. Despite this, Tether remains a dominant force globally, thanks to its extensive use in Asia, where regulatory requirements are less stringent.

What’s Next?
The new rules require stablecoin issuers to maintain substantial reserves in European banks and obtain operating licenses. In response, Tether has started investing in MiCA-compliant companies. For example, the company recently announced investments in Quantoz Payments and StablR, showcasing its commitment to maintaining a presence in the European market.

Key Facts About MiCA
MiCA is designed to ensure robust consumer protection and strengthen the fight against money laundering and terrorism financing. However, it imposes numerous requirements on both crypto exchanges and stablecoin issuers.

The regulation is extensive, and the transition period for obtaining a license in some EU member states is as short as 6 months. Companies should act quickly to comply!

Want to Meet MiCA Requirements?
Contact us! We offer:
✔️ A detailed checklist of MiCA requirements
✔️ An evaluation of your company’s compliance
✔️ Preparation of the required document package
✔️ Comprehensive MiCA readiness support and assistance with licensing

To schedule a consultation, fill out our short contact form or reach out through other contacts listed on our website. We’ll help you adapt to the new rules quickly and effectively! 🚀