The regulation of the European Union markets in crypto -active – better known as Mica – is now in its critical implementation phase. Designed to unify the regulation of cryptography in the 27 EU member states, Mica promises clarity, consumer protection and long -term stability on the market. But as the implementation begins, the cracks are already displayed.
In the episode of this week of Size of the size of an byteWe explore the main provisions of Mica now in force, in particular around Stablecoins, and why some of the largest players on the market refuse to comply.
In January 2025, the Crypto asset service providers (CASPS) began to acquire licenses to operate legally within the EU. A period of transition or “acquired rights” allows existing companies up to 18 months, according to the Member State, to comply. However, with the deadlines that were approaching, companies are forced to act quickly.
Remote stablecoins
One of the oldest and most controversial provisions of Mica involves stablescoins. Under the law, no stablecoin can be offered to EU users unless the transmitter is authorized in the EU and publishes a white paper approved by the regulator.
Strict rules concerning asset reserves, governance, conflicts of interest and marketing are also part of the package. Emitters are even prohibited from providing interests on tokens, deleting a common incentive to adoption.
In relation: Stablecoin Next “catalyst” regulations for cryptographic industry – Aptos Head
The most used stablecoin in the world – the USDT of Tether (USDT) – has already announced that it would not seek compliance with mica, which means that exchanges could soon be forced to pass it through the EU. This has major implications for liquidity, detail access and DEFI activity in the region.
The CEO of Tether, Paolo Ardoino, told Cointelegraph to Gareth Jenkinson in Token 2049:
“The reason is not, uh, the fear of regulations, the fear of compliance … The problem I had with UM, with the mica is that (the) license is very dangerous with regard to stablecoins and I believe that it is even more dangerous for the small average banking system in Europe.”
Compliance is the key
On the other hand, other companies look. Bitgo, a police custody company, recently obtained an aligned license on mica in Germany, positioning itself to serve institutional actors across Europe.
Brett Reeves, head of Go Network and European Sales in Bitgo, told Cintelegraph that the license did not only concern compliance, but long -term strategic alignment on the scalable regulatory landscape of Europe.
“We found that Bafin and European regulators were relatively simple to manage. Sometimes they have difficult questions, but they are there to make sure that our processes are in place and zero. ”
We also spoke with Erwin Volader, head of politics at the European Blockchain Association, who underlined the need for a coherent interpretation at the national level and better advice from regulators to prevent fragmentation.
Listen to the full episode of Size of the size of an byte For the full interview on the Podcasts page of Cointtelegraph, Apple or Spotify podcasts. And don’t forget to consult the full range of Cointelegraph of other shows!
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