According to Odaily, the Digital Euro Association has released a report analyzing the impact of European MiCA regulations on the issuance of stablecoins. The report suggests that MiCA could potentially serve as the foundation for global stablecoin regulation, but also proposes areas for improvement.
The report recommends the establishment of a global institution similar to the Basel Committee to unify stablecoin standards and gain insights from the implementation of MiCA. It criticizes MiCA's strict requirements, such as demanding that ordinary stablecoins and significant stablecoins hold 30% and 60% of reserve funds respectively, which affects profitability and increases credit risk. The report cites the example of the Silicon Valley Bank's collapse leading to Circle's USDC decoupling.
The report also discusses the ambiguity of anti-money laundering (AML) regulations, suggesting that further clarification is needed. In addition, international stablecoin issuers face challenges in complying with MiCAR, such as the need to hire EU-authorized custodians and address the complexity of dual issuance structures.
The report disagrees with MiCA's scale restrictions on the use of foreign currency electronic tokens in the EU, arguing that this could potentially weaken the USD/EUR trading pair, but this is not necessarily the case in reality. Overall, the report identifies many grey areas and topics that need to be considered in the EU and elsewhere.