According to Odaily Planet Daily, Digital Euro Association released a report analyzing the impact of European MiCA regulations on stablecoin issuance. The report pointed out that MiCA is expected to become the basis for global stablecoin regulation, but also proposed suggestions 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.
The report criticized MiCA’s strict regulations, such as requiring ordinary stablecoins and important stablecoins to hold 30% and 60% reserves respectively, which affected profitability and increased credit risk. The collapse of Silicon Valley Bank, which led to the decoupling of Circle’s USDC, is an example.
The report also discusses the ambiguity of anti-money laundering (AML) regulations, arguing that further clarification is needed. In addition, international stablecoin issuers face challenges in complying with MiCAR, such as hiring EU-authorized custodians and addressing the complexity of dual issuance structures. The report disagrees with MiCA's scale restrictions on the use of foreign currency electronic money tokens in the EU, arguing that this could weaken the USD/EUR trading pair, but this is not the case. Overall, the report lists many gray areas and topics that need to be considered in the EU and elsewhere.
