The European Union's Markets in Crypto-Assets Regulation (MiCA) has introduced stringent compliance requirements for stablecoins, effective June 30, 2024. Only Circle's USD Coin (USDC) and EURC have met these standards, allowing continued operation in the European Economic Area (EEA). In contrast, Tether (USDT) and MakerDAO's DAI have not secured compliance, leading to their delisting or restriction on major exchanges like Binance and Coinbase within the EEA.

MiCA mandates that stablecoin issuers possess an Electronic Money Institution (EMI) license, classifying stablecoins as e-money tokens or asset-referenced tokens, each with specific regulatory requirements. This regulatory shift reflects a broader trend towards stricter oversight, posing significant challenges for non-compliant stablecoins and potentially reshaping the market landscape.