According to TechFlow, Cointelegraph reported that the EU's "Markets in Crypto-Assets Act" (MiCA) regulations on stablecoins will take effect on June 30. The regulations prohibit stablecoins from exceeding 1 million transactions per day or a total value of more than 200 million euros (about 215 million US dollars). Major stablecoin issuers such as Tether and Circle need to obtain relevant authorization to operate in the EU. According to the regulations, non-euro-denominated stablecoins will be prohibited from issuance and use if they exceed a certain threshold.
The stablecoin rules will take effect at the end of this month, and other regulations are expected to take effect in December. A spokesperson for the European Banking Authority (EBA) said the cap was set to "protect the monetary system" and that the rules do not prevent companies from issuing stablecoins denominated in assets other than the euro. The key is whether they are used as a means of exchange to pay for goods or services, if so, a specific cap applies. The EBA is expected to publish a final report by the end of the month detailing how it monitors compliance by stablecoin issuers. Tether and Circle are actively seeking e-money licenses to continue operating legally in the European Union.