According to BlockBeats, major stablecoin issuers, including Tether and Circle, are facing imminent compliance pressure as the European Union's strict rules for stablecoin issuers are about to take effect. The new regulations, set to be implemented after June 30, require issuers operating in the 27 member states to obtain appropriate authorization and adhere to strict limits on transaction volume and value set in the MiCA legislation.
Under the law, companies must cease issuing transaction medium-type assets referring to stablecoins with a daily transaction volume exceeding one million transactions or a daily transaction value exceeding 200 million euros. Although the European Banking Authority (EBA) has not yet clarified how these metrics will be measured, it is expected to release a final report soon.
The impending regulations are part of the EU's efforts to regulate the burgeoning cryptocurrency market and ensure the stability of the financial system. The move is expected to have significant implications for the stablecoin market, potentially affecting the operations of major issuers like Tether and Circle. The new rules underscore the increasing scrutiny of cryptocurrencies by regulators worldwide, reflecting concerns about potential risks to financial stability and consumer protection.
