The recent implementation of MiCA regulations has raised concerns about the future of Tether (USDT) in Europe, contributing to a decrease in stablecoin trading activity on centralized exchanges.
According to the new regulations, issuers of stablecoins, including asset-referenced tokens (ART) and e-money tokens (EMT), must be established in the European Union, notify competent authorities, and submit a white paper for approval.
Additionally, the largest stablecoins face more stringent regulations, such as a cap on daily transactions and a requirement that 60% of reserves be held in cash deposits across multiple banks to ensure greater stability and security in the market.
Stablecoins like USD Coin (USDC) and Circleâs EUR Coin (EURC) have already complied with these requirements, leading to increased confidence and trading activity.
The introduction of MiCA regulations has undoubtedly transformed the stablecoin landscape in Europe, making compliance a crucial factor for continued participation and growth in the market.
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