MiCA to Intensify Competition for Euro-Based Stablecoins, Predicts Circle

MiCA to Intensify Competition for Euro-Based Stablecoins, Predicts Circle

With the recent release of a report by stablecoin issuer Circle, the crypto market is expected to see considerable changes in the European Union due to the implementation of the Markets in Crypto Assets (MiCA) regulation. Among the anticipated effects are localisation, institutionalisation, professionalization, and consolidation. These developments should lead to heightened growth and increased competition for euro-based stablecoins. Circle's director of regulatory affairs for the EU, Patrick Hansen, and CSO Dante Disparte, offered their insights in the report. They believe that this regulation will push both local and international stablecoin offerings to comply or cease operation in the EU within a short to medium-term timeframe. Additionally, they stated that unregulated offshore exchanges will find it challenging, if not impossible, to operate within the EU. Furthermore, the report suggests that the longer key jurisdictions like the US and UK delay in implementing similar regulations, the more substantial the global impact of MiCA will be. It is worth noting that Circle recently became the first company to acquire an Electronic Money Institution (EMI) license under the MiCA framework, granting them the authority to issue euro- and dollar-pegged tokens within the EU.