Approval of ten stablecoin issuers under the Markets in Crypto-Assets (MiCA) framework marks a major step towards European Union regulation of cryptocurrencies. Approved companies comprise Circle, Crypto.com, Societe Generale, Banking Circle, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, StabIR, and Stable Mint. These firms have together produced five US dollar-backed stablecoins and ten euro-backed stablecoins.
With a market capitalization of about $141 billion, Tether (USDT), the most stablecoin worldwide, is conspicuously absent from the approved list. This exclusion has spurred debates about the regulatory aims of the EU and its effects on the crypto industry.
MiCA rules have led crypto platforms to start delisting USDT for European users ahead of the December 2024 compliance deadline. This action also influences other US dollar-pegging stablecoins not meeting MiCA’s regulatory criteria.
Although the EU is known for offering regulatory clarity, many contend that its strict rules could hinder creativity and force businesses away. While local businesses may migrate to more forgiving countries, several industry experts caution that global cryptocurrency businesses may be reluctant to enter the European market.
Tether voiced dismay at its absence, calling the delistings premature and pointless. The business keeps growing internationally; meanwhile, it has lately suggested an investment in a South African energy company as part of its more general plan outside of digital assets.
The argument over MiCA’s long-term influence on the European crypto market is still in progress. Although the framework seeks to improve stability and consumer safety, there are worries that too strict rules would stifle competition and reduce options for European crypto users.
