According to ChainCatcher, Patrick Hansen, Circle’s senior director of EU strategy and policy, and Dante Disparte, Circle’s chief strategy officer, wrote the report, the main points of which include:

  1. With MiCA going live this year, the EU cryptocurrency market is expected to see a transformative year;

  2. The EU market is expected to become localised, institutionalised, specialised and potentially integrated;

  3. As can be seen from recent announcements by exchanges, local and global stablecoin products will either comply with the regulations or eventually disappear from the EU market in the short to medium term;

  4. Growth and competition among euro-denominated stablecoins is expected to increase;

  5. Foreign, unregulated exchanges will face significant restrictions, making it extremely difficult, if not impossible, to operate on a reverse solicitation basis, and there is still considerable work to be done on the implementation of MiCA;

  6. The longer the regulatory vacuum on cryptocurrencies continues in the United States and the United Kingdom, two major jurisdictions, the greater the global impact of the MiCA standard is likely to be.