MiCARegulation
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You’ve asked me to explain why MiCA regulation is BAD for stablecoins
I'll explain you why MiCA regulation is catastrophic for stablecoins.
MiCA demands 60% of stablecoin reserves to be held in EU banks.
Tether’s USDT is not MiCA compliant because it has US Treasuries as collateral, not EU reserves.
MiCA is designed to limit USD stablecoins and protect weak EURO stablecoins.
EU stablecoins lack liquid collateral such as bonds or assets like US Treasuries.
MiCA forces issuers to hold 60% of reserves in EU banks, where stablecoins are treated as liabilities.
Banks reinvest these reserves in low-risk assets like Euro bonds, which are less liquid that US Treasuries.
This rule increases risk for stablecoin issuers, with no benefit to EU banks - unless they issue stablecoins themselves.
MiCA ignores systemic risks of relying on fragile banks for stablecoin reserves.
Circle's USDC held 10% of reserves in Silicon Valley Bank.
When SVB collapsed in 2023, USDC’s peg fell to $0.80 due to $3 billion of trapped reserves.
SVB collapsed on a Friday, redemptions froze until Monday due to banking closures.
Coinbase also froze withdrawals, to see if US government would bail out SVB depositors.
This crisis proved one thing:
US Treasuries are safest collateral for stablecoins!
MiCA risks driving EURO stablecoins backward.
EU’s reliance on legacy banking creates systemic risks for stablecoins under MiCA.
Instead of innovation, MiCA forces issuers into fragile, outdated systems that increase risk for everyone.
You need to understand:
MiCA doesn’t add rules - it adds RISKS!
1. MiCA offers no benefit for EU stablecoins, which lack liquidity of US Treasuries.
2. MiCA drives USD stablecoins out of Europe, leaving the market fragmented.
3. MiCA forces reliance on legacy banks, which are prone to failure.
Stablecoins succeed with safe, liquid reserves like US Treasuries.
Not when they're trapped in risky, outdated banking systems.
What’s your view?
Will MiCA help Europe lead - or fall behind in crypto innovation?
👇 Let’s discuss in comments.
I'll explain you why MiCA regulation is catastrophic for stablecoins.
MiCA demands 60% of stablecoin reserves to be held in EU banks.
Tether’s USDT is not MiCA compliant because it has US Treasuries as collateral, not EU reserves.
MiCA is designed to limit USD stablecoins and protect weak EURO stablecoins.
EU stablecoins lack liquid collateral such as bonds or assets like US Treasuries.
MiCA forces issuers to hold 60% of reserves in EU banks, where stablecoins are treated as liabilities.
Banks reinvest these reserves in low-risk assets like Euro bonds, which are less liquid that US Treasuries.
This rule increases risk for stablecoin issuers, with no benefit to EU banks - unless they issue stablecoins themselves.
MiCA ignores systemic risks of relying on fragile banks for stablecoin reserves.
Circle's USDC held 10% of reserves in Silicon Valley Bank.
When SVB collapsed in 2023, USDC’s peg fell to $0.80 due to $3 billion of trapped reserves.
SVB collapsed on a Friday, redemptions froze until Monday due to banking closures.
Coinbase also froze withdrawals, to see if US government would bail out SVB depositors.
This crisis proved one thing:
US Treasuries are safest collateral for stablecoins!
MiCA risks driving EURO stablecoins backward.
EU’s reliance on legacy banking creates systemic risks for stablecoins under MiCA.
Instead of innovation, MiCA forces issuers into fragile, outdated systems that increase risk for everyone.
You need to understand:
MiCA doesn’t add rules - it adds RISKS!
1. MiCA offers no benefit for EU stablecoins, which lack liquidity of US Treasuries.
2. MiCA drives USD stablecoins out of Europe, leaving the market fragmented.
3. MiCA forces reliance on legacy banks, which are prone to failure.
Stablecoins succeed with safe, liquid reserves like US Treasuries.
Not when they're trapped in risky, outdated banking systems.
What’s your view?
Will MiCA help Europe lead - or fall behind in crypto innovation?
👇 Let’s discuss in comments.
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#MiCARegulation #mica
The European market is being invaded by banks in crisis such as Santander, Deutsche Bank, BBVA, Barclays and Société Générale, who see in RLUSD, Ripple’s stablecoin, an opportunity to regain lost financial control. With liquidity problems and historic low prices, these banking giants are desperate to stay relevant in a system that no longer belongs to them.
Through their political and economic influence, they are pressuring European governments to implement regulatory barriers against independent competitors such as USDT. This coordinated attack, disguised as concerns about “transparency” and “security”, seeks to destroy Tether’s leadership and pave the way for a stablecoin tailored to their interests: RLUSD.
Regulations such as MiCA are the perfect weapon in the hands of these banks, which are orchestrating the delisting of USDT on key platforms in the European market. This is not an effort to protect users, but a calculated move to consolidate a financial monopoly that perpetuates their power. RLUSD is not an innovation, it is the Trojan horse of institutions seeking to centralize what was born to be free.
Banks like Santander, Deutsche Bank and Barclays, unable to adapt to a decentralized system, are using RLUSD as their latest move. This is not just another stablecoin, but a plan to capture the crypto ecosystem and return control to the hands of those who have failed to protect their customers time and time again.
The crypto community must not fall into this trap. We cannot allow these failing banks to turn Europe into their fortress of digital financial control. RLUSD and XRP are garbage, symbols of manipulation and centralization. The future of crypto is in decentralization and autonomy, not in banks desperate to survive.
#NoAlRlusd #XrpEsBasura #Descentralizacion #squarefamily #BITCOIN
Through their political and economic influence, they are pressuring European governments to implement regulatory barriers against independent competitors such as USDT. This coordinated attack, disguised as concerns about “transparency” and “security”, seeks to destroy Tether’s leadership and pave the way for a stablecoin tailored to their interests: RLUSD.
Regulations such as MiCA are the perfect weapon in the hands of these banks, which are orchestrating the delisting of USDT on key platforms in the European market. This is not an effort to protect users, but a calculated move to consolidate a financial monopoly that perpetuates their power. RLUSD is not an innovation, it is the Trojan horse of institutions seeking to centralize what was born to be free.
Banks like Santander, Deutsche Bank and Barclays, unable to adapt to a decentralized system, are using RLUSD as their latest move. This is not just another stablecoin, but a plan to capture the crypto ecosystem and return control to the hands of those who have failed to protect their customers time and time again.
The crypto community must not fall into this trap. We cannot allow these failing banks to turn Europe into their fortress of digital financial control. RLUSD and XRP are garbage, symbols of manipulation and centralization. The future of crypto is in decentralization and autonomy, not in banks desperate to survive.
#NoAlRlusd #XrpEsBasura #Descentralizacion #squarefamily #BITCOIN
$USDC $USDC
USDT and MiCA Regulation: Key Updates
MiCA Enforcement:
The European Union’s Markets in Crypto-Assets (MiCA) regulation will come into effect on December 30, 2024, introducing strict compliance for stablecoin issuers.
Impact on USDT:
Tether (USDT) has not yet obtained MiCA-compliant licenses.
Some European exchanges, such as Coinbase Europe, have already delisted USDT.
Alternatives like USDC and EURC are being promoted as MiCA-compliant stablecoins.
Current Status:
Binance and other exchanges continue to list USDT for European users but await further guidance from EU regulators.
Asian and other non-European markets remain unaffected by these changes.
Precautionary Measures:
1. Monitor market updates and regulatory changes.
2. Consider diversifying holdings to MiCA-compliant coins like USDC.
3. Stay informed through official Binance updates and credible crypto news sources.
This post is for informational purposes only and does not constitute investment advice.
#MiCARegulation #Binance #USDT
USDT and MiCA Regulation: Key Updates
MiCA Enforcement:
The European Union’s Markets in Crypto-Assets (MiCA) regulation will come into effect on December 30, 2024, introducing strict compliance for stablecoin issuers.
Impact on USDT:
Tether (USDT) has not yet obtained MiCA-compliant licenses.
Some European exchanges, such as Coinbase Europe, have already delisted USDT.
Alternatives like USDC and EURC are being promoted as MiCA-compliant stablecoins.
Current Status:
Binance and other exchanges continue to list USDT for European users but await further guidance from EU regulators.
Asian and other non-European markets remain unaffected by these changes.
Precautionary Measures:
1. Monitor market updates and regulatory changes.
2. Consider diversifying holdings to MiCA-compliant coins like USDC.
3. Stay informed through official Binance updates and credible crypto news sources.
This post is for informational purposes only and does not constitute investment advice.
#MiCARegulation #Binance #USDT
See original
Why the Asset Declaration on Binance in Europe is Essential
Like any regulated financial platform, Binance requires its users in Europe to declare their assets. Reactions to this requirement have varied, ranging from incomprehension to accusations of extreme surveillance. However, this measure is essential to comply with regulations, but it is also widely misunderstood by those who criticize Binance for unfounded reasons.
Why the Declaration of Assets is Mandatory
<br />Photo by Kelly Sikkema on Unsplash<br />
Why the Declaration of Assets is Mandatory
<br />Photo by Kelly Sikkema on Unsplash<br />
Renee Maldonado tFRP:
j ai déjà répondu mais on me redemande
"USDT vs. USDC: Navigating the Stablecoin Shift in a Regulated Crypto World"
Prediction for USDT and USDC
As regulations like MiCA reshape the stablecoin landscape, here’s a detailed outlook for traders and investors navigating this evolving market:
1. USDT: Market Dominance Under Scrutiny
Strengths:USDT remains the most liquid and widely traded stablecoin, making it indispensable for high-volume traders.Its adoption across exchanges and blockchains ensures seamless accessibility.Challenges:Regulatory pressure and concerns about reserve transparency may limit its use in compliance-focused regions.MiCA regulation could push European investors to alternatives like USDC.Outlook:USDT’s dominance will persist in markets where compliance is less stringent. However, it may face increased competition in regulated regions.
2. USDC: The Compliance-Focused Alternative
Strengths:USDC’s strict adherence to regulatory standards and regular audits position it as a trusted choice for institutions.Growing adoption in DeFi platforms and remittances adds to its appeal.Challenges:Slightly lower liquidity compared to USDT may limit its utility for high-frequency traders.Adoption outside compliance-centric regions still lags behind USDT.Outlook:USDC is likely to gain market share, particularly in regions emphasizing transparency and regulation, such as Europe under MiCA.
What Should Traders Do?
Diversify Stablecoin Holdings:Balance between USDT and USDC to leverage their respective strengths: USDT for liquidity and USDC for compliance.Stay Updated on Regulations:Monitor updates on MiCA and other regulatory frameworks to adjust your strategy accordingly.Assess Use Cases:Use USDT for trading pairs and quick transactions.Choose USDC for DeFi, remittances, and long-term holdings where compliance is a priority.Monitor Market Sentiment:Regulatory announcements or audit findings could influence demand for either stablecoin.
#StablecoinShift #USDTvsUSDC #CryptoCompliance #MiCARegulation
#DeFiInvesting
Final Thought
The stablecoin market is evolving rapidly, and both USDT and USDC have roles to play in the crypto ecosystem. By understanding their differences and aligning your choices with your goals, you can navigate this transition effectively and capitalize on emerging opportunities. Stay informed, diversified, and adaptable!
As regulations like MiCA reshape the stablecoin landscape, here’s a detailed outlook for traders and investors navigating this evolving market:
1. USDT: Market Dominance Under Scrutiny
Strengths:USDT remains the most liquid and widely traded stablecoin, making it indispensable for high-volume traders.Its adoption across exchanges and blockchains ensures seamless accessibility.Challenges:Regulatory pressure and concerns about reserve transparency may limit its use in compliance-focused regions.MiCA regulation could push European investors to alternatives like USDC.Outlook:USDT’s dominance will persist in markets where compliance is less stringent. However, it may face increased competition in regulated regions.
2. USDC: The Compliance-Focused Alternative
Strengths:USDC’s strict adherence to regulatory standards and regular audits position it as a trusted choice for institutions.Growing adoption in DeFi platforms and remittances adds to its appeal.Challenges:Slightly lower liquidity compared to USDT may limit its utility for high-frequency traders.Adoption outside compliance-centric regions still lags behind USDT.Outlook:USDC is likely to gain market share, particularly in regions emphasizing transparency and regulation, such as Europe under MiCA.
What Should Traders Do?
Diversify Stablecoin Holdings:Balance between USDT and USDC to leverage their respective strengths: USDT for liquidity and USDC for compliance.Stay Updated on Regulations:Monitor updates on MiCA and other regulatory frameworks to adjust your strategy accordingly.Assess Use Cases:Use USDT for trading pairs and quick transactions.Choose USDC for DeFi, remittances, and long-term holdings where compliance is a priority.Monitor Market Sentiment:Regulatory announcements or audit findings could influence demand for either stablecoin.
#StablecoinShift #USDTvsUSDC #CryptoCompliance #MiCARegulation
#DeFiInvesting
Final Thought
The stablecoin market is evolving rapidly, and both USDT and USDC have roles to play in the crypto ecosystem. By understanding their differences and aligning your choices with your goals, you can navigate this transition effectively and capitalize on emerging opportunities. Stay informed, diversified, and adaptable!
🌍Global Stablecoin Adoption is on the rise!🚀
Recent developments driving growth:
1️⃣$USDtb by #Ethena! Labs bridge traditional finance with #DeFi, backed by real-world assets and institutions like #BlackRock—boosting trust & utility.
2️⃣$RLUSD by #Ripple💰 , approved by NYDFS, sets a standard for regulatory clarity, offering a secure and transparent option for cross-border payments.
3️⃣Tether’s investment in $StablR accelerates stablecoin adoption in Europe under #MiCARegulation , ensuring compliance & scalability.
With institutional backing, the #StablecoinMarketCap is fueling the global expansion of decentralised finance while strengthening regulatory confidence.💡💰
Recent developments driving growth:
1️⃣$USDtb by #Ethena! Labs bridge traditional finance with #DeFi, backed by real-world assets and institutions like #BlackRock—boosting trust & utility.
2️⃣$RLUSD by #Ripple💰 , approved by NYDFS, sets a standard for regulatory clarity, offering a secure and transparent option for cross-border payments.
3️⃣Tether’s investment in $StablR accelerates stablecoin adoption in Europe under #MiCARegulation , ensuring compliance & scalability.
With institutional backing, the #StablecoinMarketCap is fueling the global expansion of decentralised finance while strengthening regulatory confidence.💡💰
🚨🚨$USDT 🦅⚠️🚨
#DelistingNotice
The delisting of USDT from exchanges is primarily driven by the European Union's Markets in Crypto-Assets (#MiCARegulation ) which set stringent requirements for stablecoins. As of December 30, 2024, exchanges must delist USDT unless Tether, the issuer, meets the MiCA standards.
⚠️Non-Compliance➡️USDT currently doesn't meet MiCA's requirements for transparency, asset backing, and regulatory reporting.
⚠️Regulatory Deadline➡️ Exchanges face pressure to delist non-compliant tokens before the December 30 deadline to avoid penalties.
This move may lead to liquidity concerns, as USDT is widely used in trading pairs and cross-border transactions. However, some exchanges are offering alternative stablecoins, such as USDC, which is already MiCA-compliant.
Tether is working on #MiCA -compliant alternatives, but the exact timeline for their release is unclear. In the meantime, users can exchange their USDT for USDC on some exchanges or wait for the automatic exchange on December 30, 2024.
#DelistingNotice
The delisting of USDT from exchanges is primarily driven by the European Union's Markets in Crypto-Assets (#MiCARegulation ) which set stringent requirements for stablecoins. As of December 30, 2024, exchanges must delist USDT unless Tether, the issuer, meets the MiCA standards.
⚠️Non-Compliance➡️USDT currently doesn't meet MiCA's requirements for transparency, asset backing, and regulatory reporting.
⚠️Regulatory Deadline➡️ Exchanges face pressure to delist non-compliant tokens before the December 30 deadline to avoid penalties.
This move may lead to liquidity concerns, as USDT is widely used in trading pairs and cross-border transactions. However, some exchanges are offering alternative stablecoins, such as USDC, which is already MiCA-compliant.
Tether is working on #MiCA -compliant alternatives, but the exact timeline for their release is unclear. In the meantime, users can exchange their USDT for USDC on some exchanges or wait for the automatic exchange on December 30, 2024.
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Question about USDT and Mica bla bla bla :
If a wallet 🇨🇭 was created with exchanges via USDT … should we change with USDC or other … or can we leave it like that? Thank you
#usdt #MiCARegulation #USDC
If a wallet 🇨🇭 was created with exchanges via USDT … should we change with USDC or other … or can we leave it like that? Thank you
#usdt #MiCARegulation #USDC