The European Securities and Markets Authority (ESMA) gave cryptographic companies until March 31 to comply with the new rules of the EU stablecoin. The regulations, which are among the larger markets within the framework of crypto-sets (Mica), oblige companies to restrict or set up stablecoins which do not meet standards.
The equipment of Mica to the equipment have been in force since mid-2010, but ESMA now wants companies to finalize changes at the end of the first quarter. The regulator says companies can keep non-compliant stables available for sale, but no purchase, hitherto. He warned that delays could disrupt the markets.
Only the stablecoins authorized by a national regulator within the EU can remain listed. These tokens must maintain decent reserves and comply with the requirements of transparency and governance. The new rules aim to ensure that transmitters have adequate liquidity and that investors know what they buy.
Tether’s USDT is a stablecoin under control. We do not know if Tether intends to request authorization from the EU. The company recently ended its support for its stablecoin at the Euro, citing regulatory challenges. Observers claim that the main stable of Tether could face stricter requirements as a “significant” stable in mica, including higher capital reserves and stricter surveillance.
As the ESMA deadline approaches, crypto exchanges and stablecoin transmitters in the EU are under pressure to comply with new standards or may lose access to the large and growing digital assets ‘Europe.
According to Adam O’Neill, director of marketing in BitrueThe exchange of crypto “provisionally provides to have separate offers to customers according to the applicable regulations”.
Bitrue, which generally manages more than $ 5 billion per day of cryptographic trading volumes, estimates that legislation is necessary to guide the industry, eliminate bad players and provide protections to investors.
“After a period of time, we plan that stable -co -compliance with mica will dominate the market due to generalized adoption within the EU, which will also lead to increased confidence and adoption in other jurisdictions. As such, at that time, we do not plan that a large market for non-compliant parts and separate offers is not necessary, “said Adam.
When they have been asked if they are anxious to lose users because of the exchanges that continue to list non -compliant stables, Bitrue CMO said they don’t think it will be a problem because the exchange considers that Non -compliant stablecoins will gradually be gradually parasitic due to market forces.
“On the contrary, we think that by being fully in accordance with Mica and other global regulations, we can demonstrate that Bitred is a regulated and trustworthy player in the industry, which will result in more customers who choose to manage their assets with us “, he added.
Speaking about how it could affect the diversity of stable options available on the Bitrue platform, Adam said they did not expect each stablecoin to become of mica, which will indeed reduce The potential options available for EU customers.
“The StableCoin market is booming at the moment, but with more entities trying to capitalize on this opportunity, therefore in the long term, we will always be able to provide a healthy range of options that can respond to all user needs, “he concluded.
Certain platforms, such as Coinbase, have removed USDT preventively in December, while others, including Binance and Crypto.com, have kept the token available for EU users for the moment. This has left the merchants of the EU crypto fairly uncertain because, for the moment, Circle is the only major stable emitter with the required European license.
However, an agent of compliance with a great Crypto exchange told Financefeeds that even the USDC of Circle presents a delicate challenge for the Mica frame. Although the EBA does not directly call Circle, their examination perfectly describes the situation that the circle is currently.
“Here is the agreement: Circle exploits both an EU -based entity under Mica license and an EU entity which is not subject to the laws of the EU. However, the USDC issued by one or the other entity is entirely interchangeable and identical, which makes differentiation difficult. »»
The executive of compliance, which asked not to be identified, stressed that Mica does not specifically approach this type of configuration “one leg”. It is simply necessary to emit stablecoins by an EU -based entity, leaving a gray area in the way this scenario must be managed.
Easily the market from the stablescoins supported by a dollar
Although it is logical that mica has left aside certain parts of the world of cryptography, such as decentralized intelligent contracts and NFT, it raises the question: should stablecoins have to be dealt with in the same way?
Mica introduced strict ceilings on the program and transactions for certain “e-monnage” tokens with USD, such as USDC, USDT and Busd. The limits are set at 1 million volume transactions or 200 million euros per notional value. The idea is to put pressure for the stabbles denominated in euros, to move the Dôres market and to reduce the risks linked to the large -scale adoption of the stables.
From the EU’s point of view, this strategy is understandable, but he wants to try to block a square ankle in a round hole. In zoom out, the total global market capitalization of Stablecoins is around $ 200 billion, with USDC, USDT and Busd, by composing nearly three -quarters. Despite their domination, the European market share for stablecoins supported by the USD is already far beyond these limits.
According to Martin Håkansson, COO at Europay Connect, there is always hope that these changes can be made without waiting for Mica II, because ESMA, EBA and other European authorities work on secondary rules and Technical standards.
“A possible approach could involve a more nuanced several level system which adjusts the limits according to the size and maturity of the transmitter. Whatever the method, it should be possible to find a better balance between competing interests and the concerns that the mica currently offers, “he added.
Despite concerns about market volatility, the CEO of Blockledger Labs, Rajesh Verma, argues that the impact will be limited to the EU.
“Asia represents 80% of the USDT trading volume, the United States also dominating world cryptography trading. In addition, to align with the requirements of Mica, Tether has invested in compliant companies such as Stablr and payments Esrooz. Tether CEO, Paolo Ardoino, clearly said they were not planning to abandon the EU soon. Even if the USDT cannot be negotiated on scholarships in accordance with Mica at the moment, traders can always maintain stablecoin in non -guardian wallets as short -term correction, ”concluded Rajesh.
Jeremiah O’Connor, CTO and Co-founder at Trugard, added: “MICA and Dora executives impose strict requirements of compliance and cybersecurity on cryptographic industry, presenting opportunities for safety companies to stimulate innovation and support companies in adaptation. By rationalizing reports, by allowing real -time detection of vulnerabilities and attacks, and attenuating the risks between protocols, security companies help organizations to comply with evolutionary standards while improving their security posture. »»