In this article: New MiCA rules that took effect on December 30 are expected to increase demand for euro-stablecoins.
Currently, euro-stablecoins make up only 0.12% of the market.
they can only be used as trading pairs in regulated markets,
the crypto industry wanted regulation, and the EU's MiCA made it happen. At first glance, one might think that this is acceptable. But it's not: the MiCA regulations have caused the crypto industry sleepless nights. However, MiCA has its advantages.
According to JP Morgan (JPM), the EU MiCA rules, which will come into effect on December 30, 2024, should increase demand for euro-stablecoins.
Currently, euro-stablecoins make up only 0.12% of the market. make up only 0.12% of the market. make up only 0.12% of the market. However, MiCA could increase this figure by encouraging European banks and financial institutions to switch to euro-stablecoins to meet customer needs and make blockchain-based financial payments. JPM analysts, led by Nikolaos Panigirzoglou, said that Under MiCA, only compliant stablecoins can be used as trading pairs in a regulated market, prompting EU exchanges to adjust their offerings.
analysts also note that stable coin EURCV from Societe Generale and Visa and The report
notes that the new rules will require issuers of stable coins, such as
#Tether , to obtain an EU trading license and hold significant reserves in European financial institutions. Coinbase has already raised concerns about compliance with EU MiCA rules, citing that Tether, which is subject to EU MiCA rules, and
#USDt Tether, which is subject to EU MiCA rules. has delisted USDt Tether.
However, the bank said that Tether remains a "dominant force" in the global stablecoin market despite the challenges it has faced. The report also noted that Tether is widely used in less regulated Asian markets.
The report also noted that Tether's investments in MiCA-compliant stablecoin issuers such as Quantoz Payments.
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